Most American employees are falling brief relating to saving for retirement. As analysis has proven, financial savings traits are getting worse. This shortsightedness prices People $1.7 trillion in retirement financial savings. Ben Steverman writes on Bloomberg: “You’re touring throughout the desert, feeling parched and searching soiled. You’re taking an extended drink of water out of your canteen, then wash your face with the remaining. As you’ll uncover earlier than you die of thirst in a day or two, you simply made an enormous mistake. Exterior of cartoons, no person is that this silly. However individuals make the identical form of mistake on a regular basis, placing their present happiness (holidays, flat screens, new automobiles) manner above their future well-being. Economists name this type of irrationality ‘current bias.’ And based on a Nationwide Bureau of Financial Analysis research, it and different biases are holding again tens of millions of People from saving sufficient cash for that final future want: retirement. How a lot cash? Strive $1.7 trillion on for dimension. That’s 12 p.c of the $14 trillion in U.S. particular person retirement and 401(ok) accounts.” (bloomberg.com)
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