Did the stock market volatility in 2020 affect asset allocation of pension plan members?

We all remember the roller coaster ride stock markets had in the year 2020 that started in march with a sharp drop in stocks of almost all sectors and industries, followed by equally or even higher rises of some industries in the later months of the year. All in all, most of the markets recoveredContinue reading “Did the stock market volatility in 2020 affect asset allocation of pension plan members?”

Mandatory VS voluntary enrollment in retirement plans (Croatia VS Slovenia)

We know from lots of behavioral science literature the initial decision to join a retirement saving plan is one of the hardest, as there are lots of behavioral biases working against it, from loss aversion to status quo bias and many more. But what can we do to make this decision easier?  One of theContinue reading “Mandatory VS voluntary enrollment in retirement plans (Croatia VS Slovenia)”

Jump-start your retirement saving with the fresh start effect

End of the year brings in addition to New Year’s celebrations also New Year’s resolutions which many people make for themselves and usually include exercising more regularly, eating more veggies, quitting smoking or cutting out some other unhealthy habits. Some might also resolve to start saving for retirement or some other financial goal. So what’sContinue reading “Jump-start your retirement saving with the fresh start effect”

Boosting Covid-19 vaccine uptake and saving for retirement – same thing?

Since Covid-19 vaccines are finally being approved by regulators in the US, UK, Canada and many more countries following soon, the second part of the battle is just beginning – how to get as many people as possible vaccinated. One might think this will be first a logistical problem, but in reality it’s more ofContinue reading “Boosting Covid-19 vaccine uptake and saving for retirement – same thing?”

The behavioral side of ESG investing in retirement plans

ESG are the three letters that are nowadays tough to avoid in any conversation about retirement saving. Some even call it the next big thing after target date funds. ESG stands for using Environmental, Social and Governance factors to evaluate potential investments of pension funds. Looking at it from an alternative perspective, not just purelyContinue reading “The behavioral side of ESG investing in retirement plans”

The dangers of anchoring in retirement saving

Ever wondered why many restaurants feature lobster or other expensive dishes at the top of their menus? Well one thing is for sure, it’s not a coincidence and the main function of the lobster is not for you to order it but to make other dishes look less expensive. Let me explain. Anchoring is oneContinue reading “The dangers of anchoring in retirement saving”

(Over)optimistic Millennials and Gen Z wishing an early retirement

According to the latest Vanguard Digital Advisor survey, Millennials and members of the Gen Z generation are planning an early retirement as most of Gen Z (67%) and Millennials (61%) plan to retire before the age 65. Some are even more optimistic, as nearly a third of Gen Z (31%) and nearly a quarter ofContinue reading “(Over)optimistic Millennials and Gen Z wishing an early retirement”

Behavioral lessons for the second pension pillar in Slovenia

Existing from 2001, the second pension pillar in Slovenia is represented by private defined contribution retirement plans managed by specialised pension funds and insurance companies. The number of members has been steadily growing and at the end of last year reached 560.722 members, which is the highest number ever. This means the coverage rate isContinue reading “Behavioral lessons for the second pension pillar in Slovenia”

Saving for retirement with your credit card (Overcoming loss aversion and temporal discounting)

Why would anybody in their right mind pay pension fund contributions in installments with his or her credit card is the question most would ask after reading the title, but if you give me a bit of “credit” I will try to explain the logic.  Retirement saving is unfortunately plagued with behavioral biases that negativelyContinue reading “Saving for retirement with your credit card (Overcoming loss aversion and temporal discounting)”

Tax incentives for retirement saving don`t work (what does?)

Most countries, if not all, encourage saving for retirement by taxing retirement savings in private pension plans more favourably than savings in alternative vehicles. The goal is to increase how many people save for retirement and how much they save and with that enable them a better life in retirement.  Most countries apply a variantContinue reading “Tax incentives for retirement saving don`t work (what does?)”