NAPF urges government to 'nudge' Brits over pension calculator contributions

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NAPF urges government to 'nudge' Brits over pension calculator contributions

Mon 13th Sep 2010

A new government department dubbed the 'nudge unit' should be used to encourage people to make more contributions to their pension savings, according to a representative from the National Association of Pension Funds (NAPF).

Joanne Segars, chief executive of NAPF, suggested it could be an innovative way to persuade people to think about their future.

"The sooner the new team starts looking into ways to change people's behaviour towards pensions, the better. Our pensions saving crisis does not allow us to wait any longer," she said.

Ms Segars pointed out that changing public behaviour is a long-term task and there is currently a "serious" lack of pension saving in the UK.

In her view, there are many people who face poverty when they reach old age if they do not begin putting money aside.

The 'nudge unit' - also known as the Behavioural Insight Team - will be advised by Richard Thaler, whose 2008 book looked at how behavioural psychology could be used to subtly encourage favourable outcomes from people.

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