A psychologist's view of pensions

March 2014
Over the past few years, it has become clear that pension benefits are anything but guaranteed. Funding ratios have declined and many schemes have cut benefits accordingly. This situation has stirred a great deal of unrest among participants. Yet, if one compares the response to last year’s limited benefit cuts with the response to missing several years of inflation compensation, the former seems disproportionate. Psychological research into the way people experience uncertainty may explain this. 

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