Justin Taurog: Why we are not all built for risk

'People miscalculate how much they need'

clock • 4 min read

It is generally accepted that people do not save enough and often underestimate how much they will need in retirement, writes Justin Taurog. And there is a psychological reason why ...

Deloitte believes UK savers will have to, on average, find an additional £10,000 each year until retirement if the nation is to meet a growing ‘savings gap' that could hit £350bn by 2050. However, there is a deep-seated psychological reason for our inability to process risk, and it has implications for both advisers and providers and the way they approach retirement advice and product design.  The author Michael Lewis is probably best known for his book about the 2008 financial crisis, The Big Short, but his most recent work is more directly relevant to the way advisers speak to clients ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Ratings, Research & Risk

Dynamic Planner named the most used risk profiling tool by advisers

Dynamic Planner named the most used risk profiling tool by advisers

A fifth of advisers use tools provided by platforms

Isabel Baxter
clock 09 January 2024 • 1 min read
Clients demand customisation in investment reporting

Clients demand customisation in investment reporting

Clients increasingly requesting the ability to customise how they view their reporting

Sahar Nazir
clock 27 April 2023 • 1 min read

Salman Ansari: Explaining the Cortex vs Limbic fight

Communicating risk

Salman Ansari
clock 13 November 2019 • 4 min read