The “Behavioural Insight Team” set up by the Government to encourage responsible behaviour must also focus on boosting retirement saving, pensions experts said today.
The new team, dubbed the ‘Nudge Unit’ will use behavioural economics and psychology to persuade the public to embrace more responsible behaviour, such as eating healthily.
Joanne Segars, Chief Executive at the National Association of Pension Funds (NAPF), said:
“This could be an innovative way of changing behaviours, but the new team must not forget about pensions.
“With 53% of workers currently not saving into a workplace pension, the UK is suffering a serious lack of pension saving, which could lead to millions of people facing poverty in old age.
“Modifying the behaviour of individuals is a long-term task, which can take years. The sooner the new team starts looking into ways to change people’s behaviour towards pensions, the better. Our pensions saving crisis does not allow us to wait any longer.”
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