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.