Would You Rather Have $1 Million or $5,000 Monthly in Retirement?
“To understand why this is so, consider a phenomenon known as the illusion of wealth and the illusion of poverty, which we, along with researcher Daniel Goldstein at Microsoft Research, studied in a paper published in the Journal of Marketing Research.
To see which illusion you might suffer from, assume you have $1 million for retirement. How adequate does this amount seem on a seven-point scale, with one being ‘totally inadequate’ and seven being ‘totally adequate’?”