ESRI Research Bulletin

Supporting decision-making in retirement planning: do diagrams on pension benefit statements help?

ESRI Research Bulletin Articles provide short summaries of work published by ESRI researchers and overviews of thematic areas covered by ESRI programmes of research. Bulletin Articles are designed to be easily accessible to a wide readership. A reference or references to the full publication is included at the start of each Bulletin article.

April 11, 2019
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This study used a controlled experiment to test whether explanatory diagrams can improve comprehension of pensions and increase willingness to contribute to a pension. It finds that diagrams help people to see the benefits of contributing to a pension, but people still struggle to understand how pensions work. People find tax relief particularly complex, raising concerns about its effectiveness as an incentive.