Author: fin22

The way the retirement options or information are presented can greatly influence decision-making. In behavioral finance, this is known as the framing effect. For example, people are more likely to...... Read More

Automatic escalation: Many retirement plans provide the option for participants to automatically increase their contribution rate every year, so that the retirement savings grow over time without requiring conscious effort....... Read More

Employer-Sponsored Plans: Use employer-sponsored retirement plans, such as 401(k)s, if your employer offers a matching contribution. Automatic payroll deductions ensure saving for retirement will be a priority. Employer-Sponsored Plans: Use...... Read More

One of the very powerful tools is commitment devices - mechanisms to ensure that people remain committed to a long-term objective, for it creates consequences for those who may drift...... Read More

3. Behavioral Finance Strategies for Better Retirement Planning Understanding the above biases is the first step toward improving retirement planning. But there are many practical strategies that an individual may...... Read More

for it creates consequences for those who may drift away from the objective. Automatic enrollment in a company\'s pension plan is the kind of commitment device that could force an...... Read More