“Why do so many people save little – or nothing at all – for retirement? Because the future isn’t real to them. Only today matters. Psychological research bears out this sorry news, which is ingrained in human nature.
According to a survey by the Pew Charitable Trust, only half of American workers are enrolled in a workplace-sponsored retirement plan. And of those, most save only a few percentage points of their pay. More and more companies are using so-called auto-enrollment schemes, where employees are placed in plans like 401(k)s, and must opt out – which is more effective than trusting them to opt in. Still, saving for retirement remains too low.”