Introduction to the Video

Present bias—the tendency to prioritise the here and now over the future—is one of the most common and damaging behavioural biases in investing. In this video, Sarah Newcomb, a senior behavioural scientist at Morningstar, explains how this bias impacts financial decision-making and why it leaves many people underprepared for the future.

Newcomb highlights how present bias leads us to focus on immediate gratification, often at the expense of long-term financial security. This becomes especially problematic when planning for retirement, as failing to save early enough leaves little time to build the resources needed to sustain us when we can no longer work.

The video also explores why overcoming present bias is so challenging—it’s hardwired into our personalities. Even experts like Newcomb admit to struggling with it. However, the solution lies in creating a solid financial plan that prioritises the future and working with a trusted adviser who can help you stay focused and disciplined when distractions arise.

If you’ve ever found it hard to balance today’s wants with tomorrow’s needs, this video offers valuable insights and practical advice for safeguarding your financial future.

Disclaimer: This video does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.