The pension confidence of employees is increasing, but knowledge is lagging behind

But these positive developments are tempered by ‘uncertain market conditions’. Nationwide also discovered that almost half of the planners have made ‘reactive decisions’ to relocate their funds to more conservative assets. And the percentage is slightly higher in people aged 22 to 34 who have more time to invest and save.

Moreover, the respondents who expressed the highest levels of trust more often had risky financial decisions. It was 12 percentage points more likely to have re -allocated savings into more conservative assets, and they were 10 points more likely to make emotional decisions about investments they later regretted, such as:

• Selling at the bottom of the market
• Buy too high after a market recovery
• Lack of diversification in their investment portfolio
• Pause

Rural warned That “these actions are contrary to long -term investment principles and instinctive, instead of reflecting informed choices.” It pointed to additional data from The American College of Financial ServicesIt shows that many people miss ‘pension literacy’, including incorrect knowledge of how composite interest works.

“These findings show that self-confident feeling is not the same as being prepared. Even self-assured investors make decisions that undermine their financial security in the long term,” said Cathy Marasco, vice-president of Nationwide of Protected Pension, in a statement.

“To prevent decisions about emotion, employees must ensure that they benefit from the best advice they can get from a financial professional or resources provided by many pension plans in the workplace for those who may not have access to a consultant. They can also find security in innovative solutions that can be offered by their workplace retirement, even in investment, such as in investment, even in investment, even in investment, such as Volatile, such as in investment,” even in investment, “in full -length investment,” even in investment, “in full -scale,

“Even financial expert investors often make emotional decisions during market volatility,” said Eric Ludwig, director of the Center for Retirement Income at the American College of Financial Services. “The solution is not only more education, but plan designing that takes human psychology into account. Functions such as lifelong income options can help employees to avoid the temptation to make reactive decisions in the first place, regardless of their level of knowledge.”

The research results indicated that employees want stability in their pension plans. The majority wants an automatic registration function (73%) and the automatic contribution increases (64%). But many employees do not have access to these tools.

Nationwide reported that about a third of the companies have no car registration in the private sector and about half has no automatic increase.

The distribution between employer and employee is even grim when it comes to generating lifelong income. About 90% of employees want “guaranteed monthly income that lasts for life”, but less than 40% of private employees offer this option.

“Although many employers call higher employee costs as a barrier, 85% of employees in the private sector say that they would be willing to pay more for protected investment options today,” said Nationwide.