{"id":313028,"date":"2021-07-31T18:27:00","date_gmt":"2021-07-31T15:27:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/retirement-weekly-why-is-it-so-hard-to-save-for-retirement-is-evolution-to-blame\/"},"modified":"2021-07-31T18:27:00","modified_gmt":"2021-07-31T15:27:00","slug":"retirement-weekly-why-is-it-so-hard-to-save-for-retirement-is-evolution-to-blame","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-why-is-it-so-hard-to-save-for-retirement-is-evolution-to-blame\/","title":{"rendered":"#Retirement Weekly: Why is it so hard to save for retirement? Is evolution to blame?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ae8ca25944\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ae8ca25944\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-why-is-it-so-hard-to-save-for-retirement-is-evolution-to-blame\/#Humans_arent_wired_to_think_decades_into_the_future_about_our_needs\" >Humans aren\u2019t wired to think decades into the future about our needs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-why-is-it-so-hard-to-save-for-retirement-is-evolution-to-blame\/#Andy_Taylor\" >Andy Taylor<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Retirement Weekly: Why is it so hard to save for retirement? Is evolution to blame?<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Humans_arent_wired_to_think_decades_into_the_future_about_our_needs\"><\/span>\n  Humans aren\u2019t wired to think decades into the future about our needs<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000354901\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000354901\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The state of Americans\u2019 retirement savings is dire \u2014 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.yahoo.com\/entertainment\/retirement-savings-us-193226292.html#:~:text=1%20in%204%20Americans%20have%20no%20retirement%20savings%20%E2%80%94%20and%20those,do%20aren't%20saving%20enough&amp;text=Among%20those%2060%20years%20old,ages%20of%2018%20to%2029.\" class=\"icon none\">one in four Americans have no retirement savings at all and even those who are saving aren\u2019t saving enough<\/a>.<\/p>\n<p> Financial education is more important than ever, and more school districts across the country are beginning to add <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2021\/06\/03\/25-states-have-introduced-personal-finance-education-bills-this-year.html\" class=\"icon none\">financial literacy courses<\/a> to their curriculums. But these courses are not catching on as quickly as they should be. According to the U.S. Financial Literacy and Education Commission, only <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/mayrarodriguezvalladares\/2020\/12\/15\/financial-literacy-is-more-essential-than-ever\/?sh=6e1ab7356304\" class=\"icon none\">one-third of adults<\/a> could answer at least four of five financial literacy questions about mortgages, interest rates, inflation, and risk. Why is it still so hard for people to think long-term about money?<\/p>\n<div class=\"paywall\">\n       Biologically speaking, humans aren\u2019t wired to think decades into the future about our needs.<\/p>\n<p><em>\u201cFor the vast majority of our history we lived in hunter-gatherer societies, where resources were plentiful and all you could take with you is what you could carry, so we\u2019re not really hardwired to collect more than we need for the next day or week. The concept of delaying gratification and saving for the long, distant future is just not something we are wired to do.\u201d<\/em> \u2014 Brad Klontz, financial psychologist, author<\/p>\n<p>Leveraging the power of artificial intelligence (AI) and digital tools, we can start to change that mindset. In fact, it\u2019s already h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening and has the potential to save the financial health of a country.<\/p>\n<p>AI <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> is poised to completely overhaul our finances, giving smart banking apps the ability to automate our budgeting, saving and investing. Machines can think deeper and differently than us, but it requires trust to work. Taking that first dive into a pool was scary. Your first bicycle ride was scary. Fear of the unknown is extremely common, but once we face our fears and realize that AI can help free us from financial anxiety, we can all relax a bit.<\/p>\n<p>Every American deserves the right to put their finances on autopilot. While this ideology might seem odd to ordinary people, the top 1% have no problem handing their money over to expensive financial advisers: \u201chere, you figure it out.\u201d Meanwhile, they sit back and enjoy lofty returns. Now we have so many great apps and financial tools at our disposal that anyone, from retail workers to artists to digital nomads, can have the luxury of an automated financial life, where bills, saving and investing is handled for them.<\/p>\n<p><strong>How can AI fix our brains \u2014 and make us financially fit?<\/strong><\/p>\n<p>Remember when your mom kept reminding you to do your chores until you did them? This same principle works with \u201cdigital nudging,\u201d which was used to help people save for their retirement. What\u2019s a nudge? In the mid-1990s, Schlomo Benartzi and Nobel laureate Richard Thaler developed a program called \u201cSave More Tomorrow\u201d that sent informative emails to help people make smart decisions for retirement. Through the power of these nudges, Benartzi and Thaler were able to get employees to gradually increase their savings rate over time. As of 2017, it has positively affected over 15 million Americans.<\/p>\n<p>Another example is from the Obama administration. More than 800,000 military service members were offered the chance to enroll in a savings program, as a part of an experiment. One group received emails with smart steps they could take toward saving. These included examples of how small contributions could lead to large balances in their accounts. The test group got no guidance or digital nudges. The group with the email nudges had the highest enrollment rate. Through the power of AI technology and machine learning, we can provide even better, more personalized and insightful nudges to millions more Americans, who can then make more prudent decisions around saving for retirement.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Artificial intelligence nudges may look different for different people, and can be as simple as a reminder to save an extra few hundred dollars if spending is low. They can also be suggestions to put money saved into a conservative brokerage account and watch your money grow. When people are shown how compound interest works 5, 10, and even 20 years down the line for instance, they\u2019re more likely to take action and start saving. We just need that little nudge to do it. And with smart banking apps, you don\u2019t have to do anything once you set the goals and agree to start saving. The app does that for you automatically, and even calculates how much to allocate and for how long, which eliminates headaches and stress.<\/p>\n<p>While our brains might not be wired to think long term about savings, we\u2019re certainly smart enough to learn and change as human beings. Financial literacy does not have to just be something we learn formally in schools. It can be learned by doing, and using technology tools that can accelerate the process so we can all live financially healthier lives.\u00a0<\/p>\n<p><em>Andy Taylor is chief executive of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/douugh.com\/\" class=\"icon none\">Douugh<\/a>, a fintech startup that helps people manage and grow their money autonomously<\/em>.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Andy Taylor\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Andy_Taylor\"><\/span>Andy Taylor<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-756A-55838F792229%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Retirement Weekly: Why is it so hard to save for retirement? Is evolution to blame?&#8221; Humans aren\u2019t wired to think decades into the future about our needs The state of Americans\u2019 retirement savings is dire \u2014 one in four Americans have no retirement savings at all and even those who are saving aren\u2019t saving enough&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":313029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-313028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/313028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=313028"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/313028\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/313029"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=313028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=313028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=313028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}