Mike Morrison: Pensions and behavioural bias

Over the last few years I have become fascinated by how behavioural science interacts with the savings world and the fact we do not act rationally in making financial decisions. Instead, we are subject to certain biases and this is particularly relevant in the retirement process. In the FCA's recent Retirement Outcomes Review, there was one paragraph that caught my eye and which I believe sums up much of what has happened since 2015: "Pension freedoms have switched the mental accounting of (the) pension pot from a future retirement income choice to a current consumption choice." It im...