Want to save more for retirement? First, imagine your future self
Is not always Easy to save for retirementpartly because it’s so far away for many people that there is no feeling of urgency.
New research implies a solution. To feel closer to the future.
“People are struggling to save the future and a part of the reason why people are struggling to contact the future,” said Catherine Christensen, Assistant to the Head Coach of Indiana University. “We inquired about the study of the past if people were more connected with their future, they would be more likely to save.”
After trying and analyzing this version, Christensen says that the answer is yes.
The study found that when we think about the future, more than 80% of the time, we actually start thinking about those present.
“What we did is, in fact, it’s a finger,” says Christensen. Start the thought process, imagining that future before turning your thoughts into present and savings, it will happen.
Although the difference is delicate, it has been shown that people push more to save more. During one attempt under the research team, people with more than 6,700 customers of the Swedish company Fintech are 14% more likely to invest in long-term savings products when they first received notice.
Host Hershfere, Marketing, Professor of Determination and Professor of Psychology, prompts the provisions to be designed with deliberately simple verbs. Hotspent[We] Had language:
Although the research was adapted to the institutions, as banks imagine how to save customers more, such formulations can apply their findings.
“It’s the key here to start and returns,” Hershfer said.
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The authors of the new study are based on their hypothesis for earlier finds that people perceive trips to unfamiliar places as longer than the return of the same duration. In other words, we perceive traveling home so fast than traveling to an unknown destination.
This cognitive quirk is happening because uncertainty creates a mental distance, says Christensen. That is, people perceive the stranger as familiar than familiar. This “influence of the house”, as scientists call it, is true how we think, as well as miles that are in connection with further events or life stages.
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You are more likely to save for the future, which feels immotent, says Christensen. “Because the present is more confident than the future, we reduce the feeling of uncertainty,” he said. “In our cart, you mainly move to certainty.”
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Martha C. White It is a writer of business and finance in New York. He can be reached at renders@wsj.com.
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It appeared on March 10, 2025, published the publication as “setting the purpose of savings to the future.”
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