Shachar Kariv is the Benjamin N. Ward Professor of Economics and the Economics Department Chair at University of California, Berkeley. Like other thought leaders, Kariv believes behavioral finance is redefining the way people save and invest money, especially for retirement.
He admits retirement readiness and decision theory aren’t exactly the standard fare for economists in his position—but the trillions of dollars Americans have saved in the form of tax-qualified retirement assets comprise a critical piece of the U.S. investing landscape, he says. Beyond this, it is vital for a healthy economic future that Americans save enough to take financial responsibility for themselves and their families in retirement.
Finally—unlike economic challenges that so commonly break down by income quartile or political affiliation—everyone who hopes to retire one day, at any income level, must confront the difficult task of giving up resources today for the benefit of one’s future self.