Household financial decision making: Qualitative research with couples

35
Retirement decision making
Figure 4.2 Ease of decision making about different items and products
There were also indications that people were loss-averse: a few seemed only to value their 
workplace pension, once they were at risk of losing it. 
‘I work for an employer that has got a good reputation for a good pension. I kind of take that for 
granted, really, but they are changing this year. I think we have the final salary pension and that 
might be going ... Our contributions are going to increase. […] That is what has made us think 
about, will we have enough at the start of my retirement?’
(Danielle, 40s, North West)
Only rarely did individuals, usually alpha partners, describe themselves as comfortable with decision 
making that concerned pensions. 
4.2.3 
Rejection of retirement planning
Retirement planning, and pension saving specifically, was often put off, and sometimes rejected 
entirely. Three main types of reasons were evident for this rejection. They are discussed in turn below. 
Some individuals were focusing strongly on the present, and indeed one or two exhibited a latent 
‘fear of the future.’ Younger couples in particular spoke of their preference to deal with their current 
lives and responsibilities over their futures, especially where they had parental responsibilities. These 
tendencies were strongest in the Unbalanced Responsibility and Cautious and Content groups.
‘I want to stay young with the children. I don’t want to get older. I get funny even thinking
about it.’
(Caitlin, 30s, South East)
Tangible items
• Decision to purchase gives constant or immediate feedback.
• Gives tangible rewards.
• E.g. houses and holidays.
Tangible financial products
• Decision to purchase results in latent gratification.
• Gives poor feedback, but definite return.
• E.g. life insurance.
Distant/abstract financial products
• Decision gives poor feedback and uncertain return.
• E.g. investments.
Pensions
• Pensions regarded as extremely distant and
abstract financial products.
• For many, defined by lack of perceived return.
• May only value once at risk of losing e.g. 
in case of final salary scheme under review.
Ease of making decisions
Difficult decisions
Easy decisions
Almost all are 
comfortable
Most alphas and 
minority of betas 
comfortable
Minority are comfortable, 
usually alphas
Small minority are comfortable, 
usually alphas

---