COVID-19 Has Made It Clear That Retirement Is A Real Thing: Here’s A Secret Study Depicting The Best Way To Boost Retirement Savings

The novel coronavirus has impacted our lives so much that at the present moment, some folks can’t even think about retirement in the coming future. Nowadays, the whole idea of retirement just seems like a distant dream for those folks. However, the current situation has made it quite clear for experts that people have to work and save the most that they can if they want to secure a better future.

The science behind saving is backed by research

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A recent study has shown that people could be persuaded to save more for the future through a simple mental exercise. You only need to ask them to picture their future self in their minds rather than just centering their it on the dollars and cents that they have in their pockets at the moment.

The research involved 1,202 people who had different income levels, and their ages were between 21 and 71. The study recorded the responses of the people regarding their retirement and also included questions that inquired them on how they are planning to save before they retire.

Interesting responses were recorded

This is how the secret study worked. Half of the participants were asked how much money they would like to save for their retirement through payroll deduction. After answering these questions, those people were then asked how they wanted their life to look when they hit retirement and what they would like to do then.

The respondents were quite active in answering those questions and gave interesting replies of their own. Some wanted to pursue their passion. Some said they would make new friends, while others said that they’d like to make the world a better place.

The big takeaway from this study

The other group was asked similar questions but in a different manner. They were asked the envisioning questions first and were later asked how much they would like to save from their personal paychecks for retirement. On average, the second group of participants voted in favor of upping their savings by 31% more per paycheck. While just taking into account the views of millennials, the average amount was 52% higher.

The lesson here is simple: If you want to be more motivated to save up for retirement, envisioning yourself in that stage of life can have a positive impact on your savings target. Envisioning your retirement provides you a chance at making better decisions on how much amount to put forward toward your nest egg.