Save money tomorrow
3 important questions on Save money tomorrow
What is the standard economic theory of saving for retirement and what are the two problems
People are assumed to calculate how much they are going to earn over the rest of their lifetime figure out how much they will need when they retire and then save up just enough to enjoy a comfortable retirement without sacrificing too much while they are still working?
Problem 1: it assumes that people are capable of solving a complicated mathematical problem in order to figure out how much to save
Problem 2: It assumes that people have enough willpower to implement a relevant plan.
Problem 1: it assumes that people are capable of solving a complicated mathematical problem in order to figure out how much to save
Problem 2: It assumes that people have enough willpower to implement a relevant plan.
What is a defined contribution plan?
Employees and sometimes employers make specific contributions to a tax-sheltered account in the employee's name. The beenfits received by employees in retirement depend on the decisions they make about how much to save and how much to invest
How could use a nudge in regards to saving?
People who do not save enough
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