I’ll do it tomorrow
One of the difficult aspects about saving for retirement is that it requires planning many years in advance. And many of us are not good at forward planning.
Part of the reason is that we tend to like instant gratification – it’s hard to give up an extra week of holiday now to fund a better lifestyle as a pensioner. In technical terms, this is known as hyperbolic discounting and it can lead us to do things our future selves will regret.
The eZonomics poll result is similar to results in the ING International Survey on Pensions and Long Term Savings in which 52% of those polled who had not yet retired were worried about having enough money to do so.
Imagine yourself in the future
The eZonomics article 10 tips for planning an early retirement has ideas on how to kick start savings for the future. Among them are putting your plan in writing, not caving to peer pressure and taking bold financial steps such as having a smaller house.
The slideshow How do I plan for retirement urges savers to start early and to remember to factor inflation into their retirement calculations.
Our Five intelligent tips to help retire in comfort offers smart ways to help, backed by research. The first is simply setting time aside to regularly work on financial planning.
Finally, the eZonomics story Forward thinking has a tip for combating hyperbolic discounting. It tells how seeing an older version of yourself may help boost retirement preparations. So, imagine yourself as older. It might help make the future more real and reinforce the importance the choices we make now will have in years to come.