· 1 min read · Features

Pensions psychology

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Paul Farrell explains that pensions are not all about the numbers but about emotions

If you think pensions are all about the numbers, think again. Paul Farrell, director of benefits consulting at Lorica, explains that it is, above all, an emotive issue that employers need to tap into when talking about pensions:

“It’s long been assumed that people make decisions about pensions based on logic. In fact, it’s all based on emotions. People don’t associate themselves with the recipient of pensions funds,” says Farrell.

He suggests a way of addressing this issue: “Try and connect the current self to the future self. You could show them what their life will be like in 30 years time – even use ageing technology online. Show two scenarios: one for ageing with a sizeable pension, and one without.”

Farrell reasons that this will make people think: “Emotive issues have more of an impact when it comes to engaging people.”