New Year’s Diet
At this time of year, many of us are looking to lose pounds round our waist and gain pounds in our wallets. We can learn a lot about how we encourage people to save for their retirement by looking at the multi-million pound and much talked about world of dieting.
1. Diets slow down weight loss
When you cut your calories, your body adjusts by burning less calories. If you are a member of a workplace pension scheme, there is a strong chance that you think that the contributions set out by the scheme are enough for you.
2. Diets tell you what you cannot eat.
A diet says that you cannot eat chips. As a non chip eater, you now obsess over a bowl of chips as they have become the forbidden food. Pension companies tell you how much (and we mean much!) you have to save to have a mediocre pension. Now, you're obsessing about everything else that you could do with that amount of pension savings.
3. Diets are not fun
Diets have an element of deprivation and a “tough-it-out attitude”. For building a retirement income, there is too much emphasis on the hard bit of finding money to put into the pension. Most people have lost at least one pension or do not know how much they will get from the State. Setting a task of finding lost pensions is a fun way to start saving for retirement.
4. Check your weight every day
Great if you have lost weight but if you have put on a pound, there is a danger that you throw in the towel and tuck into the chocolate. How true that is with investments; “Review your pension regularly”. Really? If your fund has gone down, it may result in swapping investments at the wrong time or, worse still, stop contributions.
5. “No carbs” diet is best
The history of different diet fads is long and distinguished. It is really simple; burn more calories than you eat and you will lose weight. The same is true for pensions. There is no golden bullet that will engage people in saving for their retirement. Different methods will suit different people so let’s give people lots of ways that they could save, one may suit them.
6.“Want to lose weight? Pay £9.99 for a video that will guarantee you lose 10lbs in 10 days.
The diet industry is a multi-million pound industry. Celebrities and companies pile into it with books, foods, classes etc. There are multi-million pounds invested in pensions. No wonder there are scammers.