Retirement planning is perhaps the most important financial decision one ever makes, yet many individuals save too little or make poor investment decisions. Traditional finance focuses on rational decision-making and market efficiency, but behavioral finance examines how psychological factors affect financial decisions. Retirement planning is perhaps the most important financial decision one ever makes, yet many individuals save too little or make poor investment decisions. Traditional finance focuses on rational decision-making and market efficiency, but behavioral finance examines how psychological factors affect financial decisions.