Understanding the above biases is the first step toward improving retirement planning. But there are many practical strategies that an individual may employ to overcome the above biases in order to optimize his or her retirement savings.

Use a systematic investment strategy. Instead of trying to pick individual stocks or time the market, focus on a disciplined investment strategy based on your long-term goals and risk tolerance. A good example is dollar-cost averaging; you invest a fixed amount regularly, irrespective of the market conditions, which goes a long way in reducing impulsive decisions.

Seek Professional Advice: It can be countered by consulting with a financial advisor. A financial advisor can provide objective recommendations based on data and help set expectations for risk and return.

A key way to overcome present bias is through the automation of retirement savings through payroll deductions or direct transfers into retirement accounts such as 401(k)s or IRAs. Automation reduces the temptation to spend now, ensuring consistent savings before other expenditure.