#behavioral-finance

#behavioral-finance

Nationwide also found that nearly half of plan participants have made reactive decisions to shift their funds to more conservative assets. And the percentage is slightly higher among people ages 22 to 34 who have more time to invest and save. Furthermore, respondents who expressed the highest levels of confidence were more likely to make risky financial decisions. They were 12 percentage points more likely to have reallocated savings to more conservative assets,

The investment decisions people make are often influenced by cognitive biases that can lead to irrational decisions or behavior contrary to personal financial goals. Cognitive biases, like the status quo bias, showcase a tendency to prefer existing circumstances over change.