It’s not always Easy to save for pensionPartly because it is so far as it is so far that there is no sense of urgency.
New research suggests a solution: Make the future feel closer.
“People are struggling to save on the future and part of the reason why people are struggling to connect with the future,” says Catherine Christensen, an assistant for a marketing professor at Indiana University and leading author of the study. “We wondered, based on past research, if people feel more related to their own future, would they be more likely to save?”
After conducting and analyzing a series of 20 experiments to test this hypothesis, Christensen says the answer is yes.
Research has found that when we think about the future, more than 80% of the time, we actually start thinking about the present.
“What we have done is essentially to look at it,” says Christensen. Start the thinking process by imagining that the future before turning your thoughts back to the present and the savings you need to do to happen.
This intermediate state is considered one of the best pension places, a new study says: See the list
Although the difference is subtle, it has been shown to motivate people to save more. In an experiment conducted by a research team with more than 6,700 clients at the Swedish company Finthech, people with low balance -saving accounts were 14% more likely to invest in a long -term saved product when they received a notification with a language that made them first thinking about the future.
Hull Herschfield, a professor of marketing, behavioral decision -making and psychology at the University of California, Los Angeles and one of the study’s authors, says the guidelines were designed with a deliberately simple verb. “(We) had a language along:” The year is 2034 … Prey in 2024 and think about saving by 2034, “he says.
While the research was adapted to give institutions as banks insight into how to get customers to save more, Herschfield says individual savers can apply their findings using similar formulations.
“The key is here to start in the future and go back,” says Herschfield, “instead of the traditional approach just starting now and zooming in to the future.”
Social Security Payments to Increase in Public Pension Records
The authors of the new study have based their hypothesis on previous discoveries that people perceive trips to unknown locations as longer than feedback with identical duration. In other words, we understand the journey home as faster than traveling to an unknown destination.
This cognitive miracle takes place because the uncertainty creates a mental distance, says Christensen. That is, people perceive the unknown as far away from the celebrities. This “walking home”, as scientists call it, applies to how we think about years, as well as miles – what is the place where the relationship to save on future events or life phases.
Politics should divorce from investing
You are more likely to save on the future that feels immediate, says Christensen. “Since the present is safer than the future, we reduce the feeling of uncertainty” by fastening subjects with a mental destination for today’s famous reality, she says. “In our hugging, you are basically moving towards security.”
Get the fox business on the go by clicking here
Martha F. White is a news writer and finance in Newoufor. It can be reached at reports@wsj.com.
Copyright © 2022 Dow Onesons and Company, AD all rights are reserved. 87990CBE856818D5EDDAC4C7B1CDEB8
It appeared in March 10, 2025, a print edition as “Saved Goals Savings by Painting the Future”.
Document WP-WSJ -0002246561
Source link
