A substantial majority of Americans have inadequate retirement savings. Behavioral economists attribute this to

Question

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Behavioral economists attribute inadequate retirement savings to both time inconsistency of preferences (a) and lack of self-control (b). Time inconsistency of preferences means that individuals may have a preference for immediate satisfaction over long-term planning, leading them to prioritize current consumption over saving for retirement. Lack of self-control refers to individuals struggling to follow through with their intended savings plan, despite knowing that it is in their long-term best interest. Therefore, both a and b answer choices are correct.

A Substantial Majority of Americans Have Inadequate Retirement Savings