‘Optimism bias’ is a behavioural trait that helps us cope with life’s ups and downs. It’s a positive influence, but does it have any place in retirement planning? The truth is it can lead to a number of unintended consequences – most of which are undesirable.
‘Optimism bias’ is a behavioural trait that helps us cope with life’s ups and downs. It’s a positive influence, but does it have any place in retirement planning? The truth is it can lead to a number of unintended consequences – most of which are undesirable.
We’ve taken a typical retirement advice process and mapped nearly 50 different points where biases can impact different stages in the process. We’ve called it ‘Bias Insight and Action’. It’s a highly practical approach to helping you easily integrate behavioural economics into your advice process.
Behavioural economics is an important skill for today’s financial adviser. In fact, a recent survey by @FTATalkingPoint indicated 36% of advisers already use behavioural economics as part of their advice process, with 27% considering using it in the future.
Resources to help you work with biases in your advice process
Our bias insight and action resources on JustAdviser.com can help you understand what your clients are really thinking but may not reveal.
You’ll find resources that identify the behaviours which arise during each stage of the advice process, explanations of their impact and the actions you can take to counter these behaviours. Check out:
Work with biases to achieve better outcomes.
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It’s an exciting new brand which represents the heritage, legacy, passion, purpose and vision of our new organisation. We’re rethinking retirement, and we’d love to start a new conversation about retirement with you.
Just is honest and moral with a strong social purpose. A beacon within financial services. We believe everyone deserves a fair, secure and fulfilling retirement, and that financial intermediaries are best placed to help people with the choices they need to make to achieve this.
Just is a trading name of Just Retirement Limited, Just Retirement Money Limited, Partnership Life Assurance Company Limited and Partnership Home Loans Limited which are subsidiary companies of JRP Group plc. JRP Group plc was formed by the merger between Just Retirement Group and Partnership Assurance Group in 2016. For more details about the JRP Group please visit: www.jrpgroup.com
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