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)“
Tag Archives: Finance
The Dunning-Kruger effect and retirement saving
The first rule of the Dunning-Kruger club is, you don’t know that you’re a member of. A Slovenian news portal ran a terrific article the other day that also featured an interview with professor David Dunning, who together with Justin Kruger discovered the behavioral bias known today as the Dunning-Kruger effect. The effect was describedContinue reading “The Dunning-Kruger effect and retirement saving”
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?”
COVID-19 lessons for retirement saving
The reasons why most people, from the average Joe, to experts and politicians, initially did not take the coronavirus COVID-19 seriously are largely the same, as the reasons why most still do not take climate change seriously, exercise regularly or save for retirement. We can look for the culprits in an intertwined web of behavioralContinue reading “COVID-19 lessons for retirement saving”
Irrational Retirement 