Tackling the information gap in retirement saving decisions

This project will explore the sources of information that people trust and use when making retirement saving decisions, and the influence of the media on their decisions.

Why this project is important

Individuals are increasingly responsible for making long-term financial decisions about how to provide for and manage their incomes in retirement. Although automatic enrolment has been a success, many people are still not saving enough to secure a comfortable standard of living. Given the complexity of the choices available to people and the long-term implications of their decisions, access to useful and affordable information and advice is crucial. However, figures from the Financial Conduct Authority show that only 8% of adults reported receiving financial advice, and it is typically wealthier individuals who benefit.

What it will involve

Using the Wealth and Asset Survey, gathering new data on the media sources people use, and sampling information from different media sources, the research will:

• Analyse the main sources of information and trust that people use when making retirement saving decisions (e.g. family and friends, employers, financial service providers, consumer bodies, the media), how this varies across sub-groups, and whether this has changed over time.
• Analyse the relationship between the sources used, and retirement saving decisions and financial wellbeing.
• Explore the role played by different types of media – e.g. print, broadcasting, websites, social media – in influencing retirement saving decisions.
• Identify gaps – in terms of quality, reach, and impact – in the financial information available to different sub-groups and how this influences their decision-making.
• Develop a toolkit with recommendations for policy and practice to support multiple stakeholders – including policymakers, regulators, financial service providers, the media, and consumer bodies – in providing information to better support financial planning for later life, particularly among underserved groups.

How it will make a difference

The team will work with multiple stakeholders, including media organisations, government organisations and financial providers, to develop recommendations for policy and practice that will transform the way we communicate financial information to people across their lives, to better support financial planning for later life, particularly among underserved groups.

Outputs will include infographics, briefing papers, events, and a toolkit on good practice to inform the communication of financial information.