Why you need to know about behavioural finance

The UK is on the brink of “probably the single biggest implementation of behavioural economics, certainly in the financial sector, that’s been done yet”. That is the view of Tim Jones, chief executive of Nest Corporation – the man who, along with the government and The Pensions Regulator, will be in charge of ensuring that auto-enrolment is a success. Auto-enrolment is projected to encourage five to nine million people to either start saving into a pension or to increase their saving and should be a major step towards tackling the UK’s problem of failing to save for retirement. How...