Overcoming Mental Accounting:- • Consolidate accounts:- If possible, consolidate retirement accounts

Overcoming Mental Accounting:- • Consolidate accounts:- If possible, consolidate retirement accounts to make savings more streamlined and efficient. This approach makes it easier to monitor your overall progress and avoid unnecessary fees or management costs. • Understand the big picture. Do not consider retirement savings as something to be set apart from other financial goals. Integrate your retirement plan into your overall financial plan. A short-term, medium-term, and long-term financial plan can help you understand how every decision impacts your bigger financial situation. e. Anchoring Bias:- Relying Too Heavily on Initial Information Anchoring bias takes place when a person relies excessively on the first information he comes across while making a decision. Retirement planning can result in anchoring bias when investment decisions are based on past performances or when the first estimate of the retirement expenses is overly relied upon without revising the estimation for changes. Overcoming Anchoring Bias: Review Assumptions Periodically Retirement planning is an adaptive process that demands periodical reviewing. Set up the practice of regularly reviewing and altering your savings rate, investment strategy, and retirement goal by virtue of updated information, life ch