Between Christmas and New Year

That reflective week where Turkey has lost its appeal and new intentions begin.

There is a particular feeling in the days between Christmas and New Year.

  • The decorations are still up.
  • The radio is full of year in review programmes.
  • New diaries for January are sitting on kitchen tables, still blank.

It is the moment when resolutions start to form.

  • Be more organised.
  • Get back into routines.
  • Start the year properly.

We begin thinking about fresh starts, cleaner slates and getting things in order.

And yet, while many of us are already planning changes to our habits, homes and health, one area quietly escapes the resolution list.

Our finances, especially our pensions.

The Resolution Gap - Why good intentions stop short of money

Behavioural science gives us a clue.

Humans are far more likely to set resolutions around things that feel immediate, visible and within our control.

Whilst finances are clearly hugely important, and funding your retirement early has the biggest impact on how comfortable you may be later in life, pensions do not feel immediate. They are not visible in everyday life. As a result, they often do not feel fully within our control.

Researchers associated with the Behavioural Insights Team (a global research company on human behaviour) have consistently shown that when decisions feel distant or complex, people tend to defer them, even when they intend to act later.

So pensions get mentally filed under one familiar phrase.

I will sort that at some point.

This is exactly the behaviour that Pension Pulse exists to challenge.

  • 1 Step 1

    Saving is Not the Same as Planning

    Thanks to auto enrolment, supported by the Department for Work and Pensions, millions of people are now building pension savings without having to actively opt in.

    But saving by default is not the same as planning by design. These contributions are often not enough, not directed and give a false sense of security with a nasty surprise later on.

    The Financial Conduct Authority has repeatedly highlighted that many people in the UK:

    • Have multiple pension pots.
    • Are unclear on how much they have in total.
    • Do not know how their pensions are invested.
    • Rarely review whether their arrangements still suit their lives.

    In simple terms, people are doing some of the right things, but not always in a joined up way, with a sensible strategy so they can achieve their dreams.

  • 2 Step 2

    Present Bias

    Why January never quite arrives

    Another powerful behavioural force at work is present bias.

    We naturally prioritise what benefits us now over what benefits us later.

    • A New Year tidy up feels productive immediately.
    • A reviewed pension does not.

    Even during this reflective week, when intentions are high, the reward for pension planning feels distant. As a result, it slips down the priority list, often into February, then spring, then sometime.

    • The intention remains.
    • The action waits.
  • 3 Step 3

    The Many Pot Problem

    Modern working life adds another layer.

    People change jobs more frequently than previous generations, often accumulating several pension pots along the way.

    • Each pot on its own feels manageable.
    • Together, they can feel overwhelming.

    Behavioural research shows that when complexity increases, engagement falls. Rather than simplifying, people delay, not because they do not care, but because the task feels too heavy.

  • 4 Step 4

    The Real Cost of Doing Nothing

    What delay can quietly change

    Doing nothing with a pension rarely feels like a decision, but over time it becomes one.

    UK research referenced by the Pensions and Lifetime Savings Association shows that individuals who engage with their pensions earlier, by reviewing contributions, structure and investment approach, tend to achieve materially stronger retirement outcomes than those who delay meaningful planning until later in life.

    This is not about predicting markets or chasing performance.
    It is about time.

    The Financial Conduct Authority has also highlighted that many people remain in default pension arrangements for decades without review, even as their earnings, family circumstances and retirement plans change.

    In practical terms, doing nothing can mean:

    • Contributions staying at minimum levels long after affordability improves
    • Investment risk remaining misaligned as retirement approaches
    • Multiple small pots left unmanaged and difficult to plan around
    • Charges continuing unnoticed over long periods

    Behavioural research supported by the Behavioural Insights Team shows that when people eventually engage with their pensions, many say the same thing.

    I wish I had looked at this sooner.

    Not because of one single decision, but because time had already passed.

    Doing nothing does not feel like a choice, but across a working lifetime it quietly shapes outcomes.

A FAMILIAR END OF YEAR SCENARIO

Mark is 49.

Between Christmas and New Year, he makes a mental list.

  • Exercise more.
  • Sort the spare room.
  • Do something about pensions.

He knows he has several.
He does not know how they work together, or whether they should.

Nothing feels urgent.
So nothing happens.

Opportunity is lost.

This is not avoidance.
It is human behaviour.

Why this week matters

This in between week works because it creates a psychological pause.

A chance to reflect without pressure.
A natural line between before and after.

We see it as an opportunity not to rush decisions, but to decide when you will review your position.

For many people, that simply means booking a conversation with an expert adviser in January. A moment to understand what you have, how it fits together, and whether your current arrangements still make sense.

A New Year resolution does not have to be dramatic.

Sometimes it is just choosing a date to finally take stock and take control of your future. We are here to help. 

IMPORTANT INFORMATION

This article is for information only and does not constitute personal financial advice. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise, and you may get back less than you invest. Tax treatment depends on individual circumstances and UK legislation, which may change.

Why we plan resolutions but postpone our pensions. How you can take back control of your future. By Pension Pulse Pension Pulse Ltd is authorised and regulated by the Financial Conduct Authority.