People find it easier to commit to saving for retirement from next year's salary as opposed to current salary.This behavior is consistent with hyperbolic discounting of income.

Question

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According to the theory of hyperbolic discounting, individuals tend to value immediate rewards more than future rewards. Therefore, it is easier for them to commit to saving for retirement from their next year's salary as it seems less costly to them than committing to saving from the current salary.

People Find It Easier to Commit to Saving for Retirement