Rethinking Financial Behaviour

UK and US pension policy expects consistently informed decision-making in finance. Deviating from this is often deemed "irrational", ignoring uncontrollable factors in individuals' lives. Challenging existing policy approaches, this book proposes a fresh perspective on rationality when it comes to financial policy and practices.

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Pension policy in the UK and US is designed on the assumption that people make informed financial decisions, consistently invest in pensions and manage diverse portfolios. Deviating from this is often deemed irresponsible and irrational. However, this assumption overlooks uncontrollable factors like caring duties, employment breaks or income limitations. Even when individuals act as expected, unpredictable market shifts can hinder long-term planning.


This book redefines deviations to “rational behaviour” as logical responses to a dysfunctional system. Challenging existing theoretical discussions and policy approaches, it proposes a fresh perspective on rationality when it comes to financial practices and policy.