Matt Pheasey, Director of Intermediated Distribution, introduces the age of reason

 

Welcome to the age of reason

Why do we fear losses more than we value gains? The answer lies in our evolutionary past. Our ancestors may have enjoyed occasions when food was in abundance, but periods without enough to eat were potentially fatal. These primal forces still have a powerful influence on our decisions today.

Behavioural economics can help you understand why your clients sometimes act irrationally. Understanding the behaviours of your clients can help you avoid pitfalls, identify their anxieties and concerns and deliver better outcomes. And it’s particularly important as people age and their ability to reason declines.

Our aim is to help you apply behavioural economics practically in your everyday dealings with clients. We plan to take this a step further too. We’ll be developing content during 2018 that directly links different behaviours and biases to a typical advice process. 

 

Take the quiz

Why not test your knowledge of economics first? Our quick quiz has just six multi choice questions. When you've finished, you can view an explanation of each question and the answers.

Try our quick quiz now > 


 

At a glance

Our infographic explains the different behaviours and biases with practical examples to help you apply these insights in to your business. Can you spot the different types of behaviour? See our infographic to find out more.

See our NEW infographic > 

 

Why the past is a reliable guide to the future

If you’d like to find out more about these behaviours – for example, the reasons we behave like this, take a look at our new Think article. There are more examples too.

Read our latest Think Article >