Methods to Overcome Present Bias A key way to overcome present bias is through the automation of ret

Methods to Overcome Present Bias
A key way to overcome present bias is through the automation of retirement savings through payroll deductions or direct transfers into retirement accounts such as 401(k)s or IRAs. Automation reduces the temptation to spend now, ensuring consistent savings before other expenditure.
Create clear, achievable goals for the long term based on your desired retirement age, lifestyle, and target retirement income. Setting SMART long-term goals provides much-needed impetus for setting smaller goals towards retirement saving that help one act today towards savings.
b. Loss Aversion:- The Fear of Losing Money
Loss aversion happens when people tend to feel a more painful pain of loss than the gainful pleasure of a gain. The retirement planning of that often leads individuals to aversion towards investment, especially such which have high potential in terms of return on value as they fear more being looted rather than benefiting from it. It makes more portfolios to be overcautious and in critical phases of market declines may prove less rewarding.