1/3 people agreeing to switch pension providers for £100, despite a £1,111 loss over 5 years, due to incentive blindness.
A study by People's Pension and the Behavioural Insights Team found that one in three people who saw an advert promising £100 for switching pension providers agreed to do so, despite it causing them £1,111 loss over the next five years. The study suggests that the allure of cash incentives can blind savers to the negative consequences of a deal, with savers less likely to ask questions and educate themselves beforehand.
April 07, 2024
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