Video: The psychology behind pension savings

NEST’s investment director, Paul Todd, weighs in on the psychology behind pension savings and how research has helped in designing NEST’s investment strategy. The pension provider takes decisions based on research with its members’ end goals in mind, and no-one else’s.

“A big part of NEST’s strategy is to design solutions that meet the needs of people who are perhaps saving for the first time or who are less comfortable saving for the longer-term,” said Todd. “An important part of our investment strategy is diversification, so when you do see stock market falls people won’t see huge impacts on their individual pots.”

He highlights that although people don’t frequently log-on to check their pension, when there is market volatility, NEST research suggests that people make quick decisions on the back of these fluctuations. These quick decisions, which aren’t always optimal, are the sort that NEST tries to protect its savers from.

Please note: this video was originally created by Corporate Adviser, and is distributed here with their written permission.

This article was supplied by the Nest Corporation.