Human behavioural considerations on pensions

Barbara Smith, principal analyst at the OECD believes a lack of financial literacy is a major obstacle needing to be overcome in order to foster retirement saving. Research conducted by the firm in the US reveals half of adults and 66% of high school students fail basic economic tests. Additionally, for the UK Smith says fewer than 40% of respondents are confident when making decisions of a financial nature, while in Australia, 37% of those individuals with investments do not understand their fluctuating ability to go down as well as up. Speaking at the Association of British Insurers (...