TY - JOUR
T1 - Employee saving and investment decisions in defined contribution pension plans
T2 - survey evidence from the UK
AU - Byrne, A.
PY - 2007
Y1 - 2007
N2 - This paper uses data from a survey of the members of a UK defined contribution pension plan to explore the attitudes and knowledge of employees faced with pension saving and investment decisions. The results are consistent with behavioural economics in that many employees show limited interest in their pension arrangements. Not all members have received advice about their pension, but those who have are more likely to have calculated their savings needs, to have higher levels of investment knowledge, and to actively review their investments than those who have not. The members' investment preferences appear broadly consistent with traditional finance theory, although the popularity of property may reflect familiarity bias.
AB - This paper uses data from a survey of the members of a UK defined contribution pension plan to explore the attitudes and knowledge of employees faced with pension saving and investment decisions. The results are consistent with behavioural economics in that many employees show limited interest in their pension arrangements. Not all members have received advice about their pension, but those who have are more likely to have calculated their savings needs, to have higher levels of investment knowledge, and to actively review their investments than those who have not. The members' investment preferences appear broadly consistent with traditional finance theory, although the popularity of property may reflect familiarity bias.
KW - pensions
KW - defined contribution
KW - behavioural economics
KW - survey data
KW - employee saving
KW - investment decisions
KW - defined contribution pension
UR - http://www.actuaries.org.uk/__data/assets/pdf_file/0016/24361/byrne_pensions.pdf
UR - http://www2.stetson.edu/fsr/volume16.html
UR - http://www2.stetson.edu/fsr/abstracts/vol_16_num1_p19.pdf
M3 - Article
VL - 16
SP - 19
EP - 40
JO - Financial Services Review
JF - Financial Services Review
SN - 1057-0810
IS - 1
ER -