Do you know why you aren't saving enough for your future?

"Only 1 out of 10 Americans are saving enough for their retirement," reports Shlomo Benartzi, Chief Behavioral Economist of the Allianz Global Investors Center for Behavioral Finance. The other 9 out of 10 either can't or aren't saving enough for their retirement needs.

If you're part of that 90%, and most of us are, the question is simple — why aren't we saving enough? — but the answer is often more complicated.

By taking the time to learn more about you and your family, your financial professionals can develop a strategy to help you reach your goals.

To help understand these motivations, Allianz Global Investors and Professor Benartzi have turned to the study of behavioral finance. A combination of psychology and economics, behavioral finance explores how people make decisions about money. According to Professor Benartzi, there are three main factors that prevent us from saving sufficiently:

  • Our need for immediate gratification often tips the balance when we must choose between spending today and saving for tomorrow.

  • Inertia, the resistance to taking even simple steps toward our goals, can be enough to deter setting up a retirement account or arranging its funding.

  • Our natural aversion to loss means that people tend to think of saving as "losing money" because it takes away from the amount available to spend.

At Allianz Global Investors, we're addressing behavioral challenges like these with actionable ideas and practical tools that financial professionals can use to help you make better financial decisions.

To learn more about Behavioral Finance, watch Professor Benartzi's short talk at the TED Conference in New York, a non-profit organization devoted to "ideas worth spreading" in technology, entertainment, and design.