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Consumer understanding of risk
— a summary report prepared by Alan Goodman | | Author(s) | Alan Goodman |
| Corporate Author | Financial Consumer Support Committee, The Actuarial Profession; Institute of Actuaries |
| Publisher | The Actuarial Profession, London, 2005 |
| Pages | 21 pp |
| Source | Institute of Actuaries, Staple Inn Hall, High Holborn, London WC1V 7QJ. http://www.actuaries.org.uk |
| Keywords | Financial services [older people] ; Pensions ; Savings ; Consumer ; Pilot. |
| Annotation | There is a dearth of experimental research in the UK on consumer understanding of financial risk; and the existing literature suggests that people cannot learn rational preferences, particularly with regard to financial decisions. This report outlines key findings from the relevant experimental research, and a subsequent pilot study (comprising five experiments) on aspects of decision-making in long-term retirement saving and investment risk. Findings of the main research project's two studies are also outlined: the first investigated the degree to which context affects financial decision-making, while the second investigated consumers' understanding of financial risk. Overall, people need to be given specific rules on how to behave rationally when financial choices are made. The report summarises research commissioned by the Actuarial Profession, which was undertaken between 2002 and 2004 by Professor Nick Chater and Ivaylo Vlaev, Design Technology Group, Department of Psychology, University of Warwick. Much of the research appears to be relevant to work being undertaken by the Financial Services Authority (FSA) and HM Treasury. (RH). |
| Accession Number | CPA-050303219 B |
| Classmark | J: JJ: JDD: WY: 4UC |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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