By Žiga Vižintin
Behavioral Scientist
Feb 6, 2018

Why Five and Not Eight? How Round Number Bias Can Reduce Your Nest Egg

Imagine a recent college grad on his first day of work. One of the many choices he’ll have to make is how much of his salary to contribute to his retirement account. He might think to himself, “Five percent seems like a good number; not too much and not too little.” Sound familiar?

Now let’s fast forward 40 years. More…