Life-Cycle Options and Preferences

Legros, Florence

doi:10.1093/oxfordhb/9780199272464.003.0010

Cited by 2 publications

(2 citation statements)

References 10 publications

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“…These assumptions underpin the study of decision-making in the human sciences including Bratman's (1987) seminal treatise on the foundations of reasoning and planning. They also underwrite conventional microeconomic propositions such as the permanent income hypothesis, a core element in how theorists conceptualize life-time consumption and income and related saving behaviour (Legros 2006). For many social scientists, rationality has a singular and universal form: whatever the culture or society, individuals' have clear goals and objectives which drive behavior now and in the future (compare with Henrich et al 2005).…”

Section: Rationality and Planningmentioning

confidence: 97%

The Significance of Socio-Economic Status, Financial Sophistication, Salience and the Scale of Deliberation in UK Retirement Planning

Clark

Knox‐Hayes

Strauss³

2008

SSRN Journal

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Many British workers rely upon their accumulated pension savings for retirement income. Whether they appreciate the importance of saving for the future, and whether they intend to do so, are not well-understood. Based upon a representative sample of UK residents, we show that the perceived importance of pension planning is positively correlated with respondents' risk tolerance, age and income, and whether their spouses participate in employer-sponsored pension plans. Those less likely to believe planning for the future is important are younger, earn less, are women, and will rely upon others for their expected retirement welfare. It is also apparent that generic sources of information provided remotely or at the national scale for individual and household pension planning, preparedness, and knowledge of annuities do not stand comparison with the perceived value of intimate and specialist relationships. The unit of retirement planning is typically the household, rarely the region, and hardly ever the nation. To better understand these findings we frame their interpretation with reference to recent behavioral research that emphasizes people's limited cognitive and social resources and the use of heuristics such as salience in setting priorities. The implications of this framework and our empirical findings for the design and delivery of private pensions conclude the paper.

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Section: Rationality and Planningmentioning

confidence: 97%

The Significance of Socio-Economic Status, Financial Sophistication, Salience and the Scale of Deliberation in UK Retirement Planning

Clark

Knox‐Hayes

Strauss³

2008

SSRN Journal

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“…Saving for retirement can be seen as a process of accumulation over the life cycle (Legros, 2006): people normally set aside a portion of their current income in accordance with their retirement income aspirations, relying upon a bank account or something similar. No doubt, many people use bank accounts for immediate debit and credit transactions as well as a means of cash accumulation.…”

Section: Property Saving and Riskmentioning

confidence: 99%

Pensions or Property?

Clark

2012

Environ Plan A

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Saving for retirement is fraught with risk and uncertainty. For those not privileged by participation in a defined benefit pension plan, the issue is made complex by problematic decision rules: the options available are variable in terms of their costs and possible consequences, there is considerable uncertainty surrounding the anticipated outcomes of different options, and it is quite unclear whether conventional savings instruments are better or worse than simply relying upon housing and property. In this paper the problem of saving for the future is conceptualised and interrogated against respondents' views and opinions as reported in the Money section of The Sunday Times. Those interviewed are representative of a distinctive segment of the UK working population and face, more than most, the prospect of being largely responsible for their retirement income. Due regard is paid to the age and reported incomes of respondents in relation to their professed intentions just as consideration is given to their apparent risk predispositions. It is noted that many respondents preferred property over pensions across the four years considered-from the peak of the bubble through to the onset of the age of austerity. An interpretation of this preference is offered, emphasising the control of risk apparent in many people's perceptions of the value of property.

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Life-Cycle Options and Preferences

Cited by 2 publications

References 10 publications

The Significance of Socio-Economic Status, Financial Sophistication, Salience and the Scale of Deliberation in UK Retirement Planning

The Significance of Socio-Economic Status, Financial Sophistication, Salience and the Scale of Deliberation in UK Retirement Planning

Pensions or Property?

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