Psychological inertia is best described as a general tendency towards inaction and because actions are always associated with some mental or physical effort, we prefer to avoid it and maintain the status-quo. Inertia is just one of the behavioral reasons millions all across the globe are still not saving for retirement and for the onesContinue reading “How defaults influence investment allocation of pension plan members (novel data set, N = 5.953)“
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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”
Irrational Retirement 