Five beliefs that prevent you from saving more for your pension

According to Consar, people tend to make decisions in a biased way, under the effects of emotional burdens or when they have self-control problems. Those are not the best conditions to decide what to do, in fact, it can be detrimental, and economically decisions made in this way can result in a negative impact on family finances.

The Consar points out that decision-making in these circumstances produces cognitive biases occurs in conditions in which the formation of sociocultural barriers complicates even the approach to issues such as old age and saving for retirement. It should not be, because solving this situation in the best way is what can improve living conditions in the future.

There are people who exaggerate their reasoning abilities and even those to make early decisions, which of course favor them. With that way of thinking they move away from the topic of retirement. Photo: Pixabay.

If this is your case, there are five factors that prevent you from thinking about retirement, they are the following:

1. Thinking only about the present without considering the future

There is a preference for a benefit that is provided to people in the moment to receive it later, all the more so if it is a question of postponing it until the long term, and for this it does not matter that the later reception represents more benefits. Planning retirement is very complicated for many, that complication stems from thinking about the matter provokes negative emotions. The present acquires a greater relevance on what happens next.

2. Ignore dangers and problems

In the classification that is made of the issues, even if they are linked to our lives, we can try to avoid those that are considered negative, and decisions that must be made at a certain time are left for later.

For many, decision-making regarding retirement falls into the annoying issues, instead of thinking about it, they prefer to enjoy their pleasant habits and everything that is comfortable for them. When this is the case, any radical change, such as retirement, does not enter into the decisions to be made.

Self-justification leads these people to put aside everything that is uncomfortable for them, and in addition, the fact of distancing, as much as possible, what they consider negative is justified. And no guilt is admitted, if it is the issue of not saving, this impossibility is attributed to problems that they cannot solve.

3. Relying too much on your own abilities

These people exaggerate their reasoning abilities and even those of making early decisions, which of course favor them. They believe they know more than others and therefore decide more judiciously. Economically, this is very negative for them, as they consider that they will not need a large amount of money saved when they retire, because they will have the ability to continue earning money and any decision they have made that generates some complication, such as not having saved before, they will be able to solve it in the moment.

4. Finding nothing that makes you feel the need to think about retirement

Daily life works through messages, often not sent, that generate in human beings the need to meet commitments or responsibilities, such as making payments. In the case of the retreat, as it is not a daily or frequent topic, there are no messages or reminders, therefore, the matter is not addressed.

5. Stop acting or freeze for fear of the future

The uncertainty of the future, together with the discomfort it generates, causes the decisions to be made to be postponed and not even action is taken regarding the need to save additional amounts to increase the amount of the pension.

Various aspects related to retirement can paralyze many people and they will avoid even thinking about it.

More information in our Retirement Section.