‘Advisers must allow for investors’ biases’: Roe

According to John Roe, Legal & General Investment Management’s head of multi-asset funds, a close consideration of these “invisible forces” will “lead to better financial planning outcomes”.

Mr Roe said: “We con ourselves that we’re rational and make careful, objective decisions. But the data says otherwise – our brains are badly wired and prone to biases.

“People anchor their investment decisions to earlier information available to them and then, no matter the change in their circumstances, don’t adjust enough over time. This can lead to investing too little or too much, in the wrong type of investments.”