Pension scheme trustees as surrogate decision makers

Article

Weiss-Cohen, L., Ayton, P., Clacher, I. and Thoma, V. 2021. Pension scheme trustees as surrogate decision makers. Finance Research Letters. 44 (Art. 102043). https://doi.org/10.1016/j.frl.2021.102043
AuthorsWeiss-Cohen, L., Ayton, P., Clacher, I. and Thoma, V.
Abstract

Pension trustees make surrogate decisions on behalf of scheme members. However, prior research has not explored how this might affect pension adequacy. Our results show that when setting targets for pension replacement income, trustees project their own preferences instead of reflecting member preferences. Furthermore, projection was more pronounced for trustees with lower financial literacy. Trustees choose significantly higher pension replacement rates for members than members choose for themselves. Trustees also choose replacement rates higher than current benchmarks. The economic consequences are potentially considerable, due to high levels of pension contributions and incompatible risk-taking. A better understanding of the dynamics of decisions made by trustees is needed to ensure better member outcomes.

JournalFinance Research Letters
Journal citation44 (Art. 102043)
ISSN1544-6123
Year2021
PublisherElsevier
Accepted author manuscript
License
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1016/j.frl.2021.102043
Publication dates
Online03 Apr 2021
Print05 Jan 2022
Publication process dates
Accepted01 Apr 2021
Deposited06 Apr 2021
Copyright holder© 2021 Elsevier
Permalink -

https://repository.uel.ac.uk/item/892xw

Log in to edit

Download files

Accepted author manuscript
Pension Surrogate Decisions (accepted manuscript).pdf
License: CC BY-NC-ND 4.0
File access level: Anyone

  • 106
    total views
  • 20
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Differences Amongst Estimates of the UK Problem Gambling Prevalence Rate Are Partly Due to a Methodological Artefact
Newall, P. W. S., Weiss-Cohen, L., Thoma, V. and Ayton, P. 2022. Differences Amongst Estimates of the UK Problem Gambling Prevalence Rate Are Partly Due to a Methodological Artefact. International Journal of Mental Health and Addiction. https://doi.org/10.1007/s11469-022-00877-z
The effects of sex and handedness on masturbation laterality and other lateralised motor behaviours
Rodway, P., Thoma, V. and Schepman, A. 2022. The effects of sex and handedness on masturbation laterality and other lateralised motor behaviours. Laterality. 27 (3), pp. 324-352. https://doi.org/10.1080/1357650X.2021.2006211
Gut thinking and eye tracking: evidence for a central preference heuristic
Thoma, V., Rodway, P. and Tamlyn, G. 2021. Gut thinking and eye tracking: evidence for a central preference heuristic. European Journal of Cognitive Psychology. 33 (8), pp. 919-930. https://doi.org/10.1080/20445911.2021.1969942
Cognitive Predictors of Precautionary Behavior During the COVID-19 Pandemic
Thoma, V., Weiss-Cohen, L., Filkuková, P. and Ayton, P. 2021. Cognitive Predictors of Precautionary Behavior During the COVID-19 Pandemic. Frontiers in Psychology. 12 (Art. 589800). https://doi.org/10.3389/fpsyg.2021.589800
The edge of reason: A thematic analysis of how professional financial traders understand analytical decision making
Anderson, I. and Thoma, V. 2020. The edge of reason: A thematic analysis of how professional financial traders understand analytical decision making. European Management Journal. 39 (2), pp. 304-314. https://doi.org/10.1016/j.emj.2020.08.006
Water supplementation after dehydration improves judgment and decision-making performance
Thoma, V. and Patsalos, Olivia C. 2020. Water supplementation after dehydration improves judgment and decision-making performance. Psychological Research. 84, p. 1223–1234. https://doi.org/10.1007/s00426-018-1136-y
Transcranial alternating current stimulation (tACS) at 40 Hz enhances face and object perception
Gonzalez Perez, M., Wakui, E., Thoma, V., Nitsche, M. A. and Rivolta, D. 2019. Transcranial alternating current stimulation (tACS) at 40 Hz enhances face and object perception. Neuropsychologia. 135 (Art. 107237). https://doi.org/10.1016/j.neuropsychologia.2019.107237
Review: Non‐invasive brain stimulation in behavioral addictions: insights from direct comparisons with substance use disorders
Gomis Vicent, E., Thoma, V., Turner, J., Hill, K. P. and Pascual‐Leone, A. 2019. Review: Non‐invasive brain stimulation in behavioral addictions: insights from direct comparisons with substance use disorders. The American Journal on Addictions. 28 (6), pp. 431-454. https://doi.org/10.1111/ajad.12945
Thinking dispositions and cognitive reflection performance in schizotypy
Broyd, Annabel, Ettinger, Ulrich and Thoma, V. 2019. Thinking dispositions and cognitive reflection performance in schizotypy. Judgment and Decision Making. 14 (1), pp. 80-90.
Determinants for Successful Agile Collaboration between UX Designers and Software Developers in a Complex Organisation
Jones, Alexander and Thoma, V. 2019. Determinants for Successful Agile Collaboration between UX Designers and Software Developers in a Complex Organisation. International Journal of Human–Computer Interaction. 35 (20), pp. 1914-1935. https://doi.org/10.1080/10447318.2019.1587856
Exploring the relationship between grapheme colour-picking consistency and mental imagery
Spiller, M., Harkry, Lee, McCullagh, Fintan, Thoma, V. and Jonas, C. 2019. Exploring the relationship between grapheme colour-picking consistency and mental imagery. Philosophical Transactions B: Biological Sciences. 374 (Art. 20190023). https://doi.org/10.1098/rstb.2019.0023
Three-quarter views of depth-rotated faces induce face-specific capacity limits in visual search
Thoma, V. and de Fockert, Jan W. 2019. Three-quarter views of depth-rotated faces induce face-specific capacity limits in visual search. Experimental Psychology. 65 (6), pp. 360-369. https://doi.org/10.1027/1618-3169/a000421
Behavioral biases in pension fund trustees’ decision-making
Weiss-Cohen, Leonardo, Ayton, Peter, Clacher, Iain and Thoma, V. 2018. Behavioral biases in pension fund trustees’ decision-making. Review of Behavioural Finance. 11 (2), pp. 128-143. https://doi.org/10.1108/RBF-05-2018-0049
Anodal transcranial direct current stimulation over the right dorsolateral prefrontal cortex enhances reflective judgment & decision-making
Edgcumbe, Daniel R., Thoma, V., Rivolta, Davide, Nitsche, Michael A. and Fu, C. 2018. Anodal transcranial direct current stimulation over the right dorsolateral prefrontal cortex enhances reflective judgment & decision-making. Brain Stimulation. 12 (3), pp. 652-658. https://doi.org/10.1016/j.brs.2018.12.003
Misaligned and Polarity-Reversed Faces Determine Face-specific Capacity Limits
Thoma, V., Ward, Neil and de Fockert, Jan W. 2016. Misaligned and Polarity-Reversed Faces Determine Face-specific Capacity Limits. Frontiers in Psychology. 7 (1470). https://doi.org/10.3389/fpsyg.2016.01470
View-sensitive ERP repetition effects indicate automatic holistic processing of spatially unattended objects
Wakui, E., Thoma, V. and de Fockert, Jan W. 2016. View-sensitive ERP repetition effects indicate automatic holistic processing of spatially unattended objects. Neuropsychologia. 89, pp. 426-436. https://doi.org/10.1016/j.neuropsychologia.2016.07.024
Reachability Does Not Explain the Middle Preference: A Comment on Bar-Hillel (2015)
Rodway, P., Schepman, A. and Thoma, V. 2016. Reachability Does Not Explain the Middle Preference: A Comment on Bar-Hillel (2015). i-Perception. 7 (2).
Event-related potential effects of object repetition depend on attention and part-whole configuration
Gosling, Angela, Thoma, V., Fockert, Jan W. De and Richardson-Klavehn, Alan 2016. Event-related potential effects of object repetition depend on attention and part-whole configuration. Frontiers in Human Neuroscience. 10 (478). https://doi.org/10.3389/fnhum.2016.00478
Looking behaviour and preference for artworks: The role of emotional valence and location
Kreplin, Ute, Thoma, V. and Rodway, Paul 2014. Looking behaviour and preference for artworks: The role of emotional valence and location. Acta Psychologica. 152, pp. 100-108.
Spatial attention enhances object coding in local and distributed representations of the lateral occipital complex
Guggenmos, Matthias, Thoma, V., Haynes, John-Dylan, Richardson-Klavehn, Alan, Cichy, Radoslaw Martin and Sterzer, Philipp 2015. Spatial attention enhances object coding in local and distributed representations of the lateral occipital complex. NeuroImage. 116, pp. 149-157.
Good Thinking or Gut Feeling? Cognitive Reflection and Intuition in Traders, Bankers and Financial Non-Experts
Thoma, V., White, Elliott, Panigrahi, Asha, Strowger, Vanessa and Anderson, I. 2015. Good Thinking or Gut Feeling? Cognitive Reflection and Intuition in Traders, Bankers and Financial Non-Experts. PLoS ONE. 10 (4), p. e0123202.
Priming of object detection under continuous flash suppression depends on attention but not on part-whole configuration
Stein, Timo, Thoma, V. and Sterzer, Philipp 2015. Priming of object detection under continuous flash suppression depends on attention but not on part-whole configuration. Journal of Vision. 15 (3), pp. 15-15. https://doi.org/10.1167/15.3.15
Non-holistic coding of objects in lateral occipital complex with and without attention
Guggenmos, Matthias, Thoma, V., Cichy, Radoslaw Martin, Haynes, John-Dylan, Sterzer, Philipp and Richardson-Klavehn, Alan 2014. Non-holistic coding of objects in lateral occipital complex with and without attention. NeuroImage. 107, pp. 356-363. https://doi.org/10.1016/j.neuroimage.2014.12.013
Object representations in ventral and dorsal visual streams: fMRI repetition effects depend on attention and part–whole configuration
Thoma, V. and Henson, Richard N. 2011. Object representations in ventral and dorsal visual streams: fMRI repetition effects depend on attention and part–whole configuration. NeuroImage. 57 (2), pp. 513-525.
Face-specific capacity limits under perceptual load do not depend on holistic processing
Thoma, V. 2014. Face-specific capacity limits under perceptual load do not depend on holistic processing. Psychonomic Bulletin and Review. 21 (6), pp. 1473-1480. https://doi.org/10.3758/s13423-014-0633-2
The devil you know: The effect of brand recognition and product ratings on consumer choice
Thoma, V. and Williams, Alwyn 2013. The devil you know: The effect of brand recognition and product ratings on consumer choice. Judgment and Decision Making. 8 (1), pp. 34-44.
Perceptual load effects on processing distractor faces indicate face-specific capacity limits
Thoma, V. and Lavie, Nilli 2013. Perceptual load effects on processing distractor faces indicate face-specific capacity limits. Visual Cognition. 21 (8), pp. 1053-1076.
Good thinking or gut feeling? Decision-making style and rationality in traders, bankers and financial non-experts
Thoma, V. 2013. Good thinking or gut feeling? Decision-making style and rationality in traders, bankers and financial non-experts. UEL Research and Knowledge Exchange Conference 2013. University of East London, London 26 Jun 2013 London University of East London.
Evidence for holistic representations of ignored images and analytic representations of attended images
Thoma, V., Hummel, John E. and Jules, Davidoff 2004. Evidence for holistic representations of ignored images and analytic representations of attended images. Journal of Experimental Psychology: Human Perception and Performance. 30 (2), pp. 257-267.
Priming of depth-rotated objects depends on attention and part changes
Thoma, V. and Davidoff, J. 2006. Priming of depth-rotated objects depends on attention and part changes. Experimental Psychology. 53 (1), pp. 31-47.
Priming of plane-rotated objects depends on attention and view familiarity
Thoma, V., Davidoff, J. and Hummel, J.E. 2007. Priming of plane-rotated objects depends on attention and view familiarity. Visual Cognition. 15 (2), pp. 179-210.
Object representations in ventral and dorsal visual streams: fMRI repetition effects depend on attention and part–whole configuration
Thoma, V. and Henson, R.N. 2011. Object representations in ventral and dorsal visual streams: fMRI repetition effects depend on attention and part–whole configuration. NeuroImage. 57 (2), pp. 513-525.
The role of perceptual load in object recognition
Lavie, Nilli, Lin, Zhicheng, Zokaei, Nahid and Thoma, V. 2009. The role of perceptual load in object recognition. Journal of Experimental Psychology: Human Perception and Performance. 35 (5), pp. 1346-1358.