Report: The savings psyche of the UK
This report investigates what employees think about savings and offers a new approach for 21st century Britain.
The paper, from Willis Towers Watson and Nottingham University Business School, looks at the decisions that employees make about their savings, the challenges associated with employee pension contribution schemes and what might be done to solve them.
- The amount of choice among savings initiatives has left millions of people overwhelmed, causing them to make no decisions at all.
- Around 65% of respondents want a level of flexibility with their pension options, with younger people seeing the greatest benefit in having flexibility.
- More than one-third of respondents claim to have little or no knowledge and understanding of savings, or a level that has significant room for improvement.
- Nearly three-quarters of employees think the Lifetime ISA holds either an equivalent level of appeal to the traditional pension or a higher level. However, only 37% are totally sure how they work.
This research report is based on a survey of nearly 2,000 workers and is a comprehensive study of a cross-section of the UK workforce. The detailed analysis by the University of Nottingham incorporates insights from behavioural economics and other perspectives on consumer behaviour and decision-making.