Household financial decision making: Qualitative research with couples

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Retirement decision making
Figure 4.3 Typical variation in the types of inertia inhibiting retirement
 
over time
4.2.5 
Likely reactions to automatic enrolment
There were broad patterns in the three groups’ likely reactions to automatic enrolment, and 
in whether they thought it would be likely to impact on their current pension savings or other 
retirement provision. The groups are discussed in turn below. 
Unbalanced Responsibility
Although they recognised that they would have to make contributions, some couples in the 
Unbalanced Responsibility group thought of automatic enrolment as giving them ‘something for 
nothing’ and anticipated remaining in schemes. Others in this group displayed a marked tendency 
to distrust the government. While this distrust was mentioned by couples in the other groups, it was 
more pronounced in the Unbalanced Responsibility type. These couples were often wary of what 
they would receive through automatic enrolment. One or two expressed intentions to hedge their 
bets, for example, by investing an equivalent amount to their automatic enrolment contribution in 
an alternative form of savings. 
While members of this group were among the most negative in their reactions to automatic 
enrolment, Unbalanced Responsibility couples were also typically the most ‘inert’ group, as described 
above in Section 4.2.4. It therefore seems likely that most couples in this group will continue to 
contribute to employer schemes after automatic enrolment is implemented. 
Old
Young
Material 
inertia 
Indications of belief that 
with these ‘milestones’ 
achieved, will be more 
financially confident 
and responsible
… however, low financial 
confidence and general inertia 
still feature strongly. Couples 
with children are often caught 
up in parental responsibilities
Emotional 
inertia
Day-to-day
inertia
House
Married
Children
Emotional barriers do 
not necessarily 
disappear with age. 
May even increase as 
couples face new 
challenges
Adjustment to life on 
a lower income
Retire

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