Triple Play is a weekly NJBIZ feature that asks top executives in New Jersey to talk about three things related to their industry.
Kara Segreto is the chief marketing officer for Prudential Retirement.
Kara's top three behavioral challenges she faces when helping confidence-challenged workers prepare for their retirement.
How long will I live?: Something Prudential has learned from its study of human behavior is that we don't recognize our future selves. We see that person as a stranger. Hence, we are not as compelled to invest in the security of that future self as we are to react to more immediate financial needs.
I'll do it later: Most of us grossly underestimate how long a retirement we will have to finance. For many it could be more than 30 years. Understanding that saving right now and enough, consistently over an entire career, is the next challenge to creating a secure retirement.
I want it now: Understanding how today's savings will translate into monthly income at retirement that won't run out is key. Think of it as deferred gratification. Saving early through a wise mix of investment options that provide broad diversification with a guaranteed income feature could go a long way to help ensure an adequate steady stream of retirement income later.