Instead of highlighting only total wealth, financial sites and apps should help people focus on their projected monthly income as well. To see which illusion you might suffer from, assume you have $1 million for retirement. This is likely due to a “ceiling effect”: A million dollars is a lot of money, but so is $2 million, and so is $4 million. Instead of highlighting only total wealth, financial websites and apps should help people focus on their projected monthly income, too. Photo: iStockphoto/Getty ImagesFor the past several years, bipartisan legislation has been pending in Congress that would require employer-sponsored retirement plans to provide participants with a projection of monthly income in retirement based on their savings.

Source: Wall Street Journal March 27, 2017 02:26 UTC