The aim of this project is to understand the relationship between economic models of risk and savings behaviour and the way in which individuals perceive the way different risks affect their lives. More specifically, we will use economic data to document the changing risks that have hit particular groups of the population. This analysis will also bring out stylised facts relating to conflicts between empirical evidence and the predictions of economic models. Using psychological techniques we will then find out the extent to which the experiences of these groups of the population can shed light on these puzzels and also how the economic behaviour of these groups relates to the perceptions of the economic constraints and opportunities that they face. In doing this the project will enhance the correspondence between psychology and economics in the analysis of individual savings decisions.