# Present Bias

*Behavioral Finance — Finicade finance glossary*

Present bias is valuing immediate rewards disproportionately over future ones, in a way that reverses your own earlier plans. Everyone agrees to save more next year and not this one. It's the fundamental obstacle to retirement saving, and the designs that beat it work by removing the repeated decision: automatic escalation, payroll deduction, and committing future raises in advance.

**Also known as:** hyperbolic discounting, time inconsistency, instant gratification

**Related terms:** [Status Quo Bias](https://finicade.com/glossary/status-quo-bias), [Savings Rate](https://finicade.com/glossary/savings-rate), [Auto-Enrolment](https://finicade.com/glossary/auto-enrolment), [Compound Interest](https://finicade.com/glossary/compound-interest), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases)

Source: https://finicade.com/glossary/present-bias