Artikel
Mental time travel and retirement savings
We portray the valuation of retirement savings in terms of a mental time travel journey in which a proposed contribution to a pension plan is projected forward to the plan member's retirement date and this projected value is then discounted back to today, thereby giving a present or personal value. We set this within a broader framework of pension planning, which seeks to smooth consumption over the lifecycle. We explain how two psychological biases-exponential growth bias and present bias-can lead to a difference between the initial value of a pension contribution and its present value, such a difference reflecting an asymmetry between projection and discounting, and how such a difference might lead to inadequate retirement savings and hence to a lower than desired standard of living in retirement. We consider how the two biases might be mitigated.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 14 ; Year: 2021 ; Issue: 12 ; Pages: 1-13 ; Basel: MDPI
- Klassifikation
-
Wirtschaft
- Thema
-
retirement savings
lifecycle model
financial investment valuation
mental time travel
time perception
projecting
exponential growth bias
discounting
present bias
symmetric
asymmetric
valuation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Blake, David
Pickles, John
- Ereignis
-
Veröffentlichung
- (wer)
-
MDPI
- (wo)
-
Basel
- (wann)
-
2021
- DOI
-
doi:10.3390/jrfm14120581
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Blake, David
- Pickles, John
- MDPI
Entstanden
- 2021
Ähnliche Objekte (12)
Announcing the 2018 IJFS Travel Awards for Ph.D students
Health insurance patterns of older veterans: Evidence from the health and retirement study
Retirement ages by socio-economic class
Savings after retirement
Financial literacy levels among Saudi citizens across budgeting, saving, investment, debt, and insurance dimensions
A digital individual benefit statement to mitigate the risk of poverty in retirement: The case of Switzerland
The impact of guarantees on the performance of pension saving schemes: Insights from the literature
Nudges and networks: How to use behavioural economics to improve the life cycle savings-consumption balance
Determinants of private savings in the form of bank deposits: A case study on regions of the Russian Federation
Does death anxiety moderate the adequacy of retirement savings? Empirical evidence from 40-plus clients of Spanish financial advisory firms
Rational savings account models for backward-looking interest rate benchmarks
Optimal time to enter a retirement village
Announcing the 2018 IJFS Travel Awards for Ph.D students
Health insurance patterns of older veterans: Evidence from the health and retirement study
Retirement ages by socio-economic class
Savings after retirement
Financial literacy levels among Saudi citizens across budgeting, saving, investment, debt, and insurance dimensions
A digital individual benefit statement to mitigate the risk of poverty in retirement: The case of Switzerland
The impact of guarantees on the performance of pension saving schemes: Insights from the literature
Nudges and networks: How to use behavioural economics to improve the life cycle savings-consumption balance
Determinants of private savings in the form of bank deposits: A case study on regions of the Russian Federation
Does death anxiety moderate the adequacy of retirement savings? Empirical evidence from 40-plus clients of Spanish financial advisory firms
Rational savings account models for backward-looking interest rate benchmarks
Optimal time to enter a retirement village
Announcing the 2018 IJFS Travel Awards for Ph.D students
Health insurance patterns of older veterans: Evidence from the health and retirement study
Retirement ages by socio-economic class
Savings after retirement
Financial literacy levels among Saudi citizens across budgeting, saving, investment, debt, and insurance dimensions
A digital individual benefit statement to mitigate the risk of poverty in retirement: The case of Switzerland
The impact of guarantees on the performance of pension saving schemes: Insights from the literature
Nudges and networks: How to use behavioural economics to improve the life cycle savings-consumption balance
Determinants of private savings in the form of bank deposits: A case study on regions of the Russian Federation
Does death anxiety moderate the adequacy of retirement savings? Empirical evidence from 40-plus clients of Spanish financial advisory firms
Rational savings account models for backward-looking interest rate benchmarks