The 2013 Retirement Confidence Survey: perceived savings needs outpace reality for many

One influential perspective on what motivates people's behavior is detailed in Tory Higgin's self-discrepancy theory (Higgins, 1987). He proposed that people hold disagreeing internal representations of themselves that lead to different emotional states.

Unrealistic optimism bias is the tendency to overestimate the likelihood of positive outcomes. This cognitive bias makes individuals believe they are less likely to experience failures, setbacks, or risks and more likely to succeed than others. For example, people may assume they are less prone to health issues, accidents, or financial struggles than their peers, even when they share similar risk factors.One key component of this bias is the above-average effect, where individuals perceive...

Self-discrepancy theory explains how people compare their actual self to their ideal and ought selves and how mismatches between these self-guides can lead to emotional distress. Developed by E. Tory Higgins, the theory distinguishes among three components of self-concept: the actual self, the ideal self, and the ought self. These refer respectively to how individuals perceive themselves, how they aspire to be, and how they believe they are obligated to be. Emotional well-being, self-esteem,...

Hindsight bias leads you to believe that the event you just experienced was predictable, even though it really wasn’t. In other words, you knew all along that things would turn out the way they did. Can you relate this to the phrase "Hindsight is 20/20" now?

Social psychologists have documented that feeling good about ourselves and maintaining positive self-esteem is a powerful motivator of human behavior (Tavris & Aronson, 2008). In the United States, members of the predominant culture typically think very highly of themselves and view themselves as good people who are above average on many desirable traits (Ehrlinger, Gilovich, & Ross, 2005). Often, our behavior, attitudes, and beliefs are affected when we experience a threat to our...

Introspection, long upheld as a reliable route to self-knowledge, involves examining one's thoughts, emotions, and mental processes. It underpins many psychological practices, from mindfulness meditation to psychotherapy and self-help strategies. However, empirical evidence challenges the accuracy of introspection as a means of understanding oneself.Limitations of Introspective InsightSeminal work by Nisbett and Wilson demonstrated that individuals are frequently unaware of the true causes...