Many workers know they should save for retirement, but they put off doing so. They reason that there is plenty of time to do so in the future when their bills are not as high as they are now. What psychological factor associated with behavioral economics explains this behavior?
A) sunk cost fallacy
B) overvaluing the present relative to the future
C) overconfidence
D) framing bias

Question

Quizplus · Accepted Answer

This behavior is explained by overvaluing the present relative to the future, where individuals prioritize immediate rewards over future benefits, leading to procrastination on saving for retirement.

Many Workers Know They Should Save for Retirement, but They