Household financial decision making: Qualitative research with couples

participation rises with age, but peaks among people in their 40s.
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1.2 
Research objectives
This qualitative research study was designed to deepen understanding of how these and other 
considerations impact on views and behaviours regarding retirement planning. DWP commissioned 
RS Consulting to explore the financial decisions couples make in general and specifically for 
retirement. The broad objectives were to:
• explore how households make decisions about pension saving and retirement more generally, 
including uncovering any possible typologies of decision making;
• examine the extent to which retirement planning is independent or collaborative, and how far 
partners in a relationship discuss their separate and/or joint plans. Specifically, we sought to 
understand the degree to which they consider or depend on their partner’s provision, and whether 
they discuss this or make assumptions. We also wished to capture how the extent of collaboration 
versus independence during the decision-making process varies across households;
• gain a clearer understanding of couples’ underlying attitudes to and behaviour around pensions, 
saving and retirement planning, in particular within the context of the life-cycle and the incidence 
of life events;
• gain a sense of the level of influence of socioeconomic and demographic factors on how decisions 
are made.
Behavioural economics
Classical economics regards people as rational and self-preserving; behavioural economics puts 
forward a different view, arguing that people make much less rational decisions in real life. This 
theory could have significant implications for how people plan for later life. Consequently, the 
research was also intended to observe and discuss real-life triggers and barriers to decision making. 
It draws upon behavioural economic theory to contextualise partners’ actions and attitudes.
1.3 
Policy objectives
The research will feed into discussions around:
• Whether policy developments could help people to overcome inhibiting factors and encourage 
pension saving: either increasing existing provision, starting new provision, or maintaining existing 
provision for their retirement through the life course or when faced with specific life events.
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Thomas, A. et al. (2009).
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Thomas, A. et al. (2009).
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Smith, S. (2006). Persistency of pension contributions in the UK: Evidence from aggregate and 
micro-data. CMPO, University of Bristol, Working Paper No. 06/139.

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