Chapter

Time Perception and Retirement Saving: Lessons from Behavioral Decision Research

Gal Zauberman and B. Kyu Kim

in Financial Literacy: Implications for Retirement Security and the Financial Marketplace

Published in print October 2011 | ISBN: 9780199696819
Published online January 2012 | e-ISBN: 9780191732089 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199696819.003.0011

Series: Pensions Research Council

Time Perception and Retirement Saving: Lessons from Behavioral Decision Research

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This chapter provides a behavioral decision perspective on the implications of intertemporal choice research for retirement savings. In particular, we focus on two cognitive mechanisms explaining how and why future monetary outcomes are discounted: (a) changes in the perception of delayed outcomes due to changes in mental representations and perceived slack, and (b) changes in the perception of temporal distance to delayed outcomes. Relevant recent findings are reviewed and the implications for retirement savings are discussed.

Keywords: future; saving; retirement; temporal; behavioral; income; discount

Chapter.  5080 words. 

Subjects: Pensions

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