Connection to Future Self Is Key to Retirement Readiness
The relationship we forge with our future selves can greatly impact financial decision making in the present. Research conducted by social psychologist Hal Hershfield using functional magnetic resonance imaging revealed that subjects with a stronger connection to their future selves were more likely to delay gratification and make more prudent financial choices. But how can plan sponsors help employees make the connection? The Consumer Financial Protection Bureau has a “Future Self Tool” with three self-guided exercises.
