How Behavioral Finance Can Improve Your Retirement Planning

Retirement planning is perhaps the most important financial decision one ever makes, yet many individuals save too little or make poor investment decisions. Traditional finance focuses on rational decision-making and market efficiency, but behavioral finance examines how psychological factors affect financial decisions. By understanding biases and heuristics that often guide financial behavior, individuals can make better choices in optimizing retirement planning. In this article, we explore how behavioral finance can significantly improve your retirement planning.