Harvard Researchers Found 3 Retirement Mistakes You're Probably Making

You’ve read the books. You’ve listened to the financial podcasts.

You’ve maxed your match, avoided the G Fund trap, and probably rolled your eyes at those who still think the Roth TSP is “too risky.”

But even sharp feds get blindsided by one thing…

The subtle ways your brain rewires your TSP strategy without your permission.

Let’s cut to it.

1️⃣ The “It’s Fine” Problem

(Status quo bias)

You picked your funds a decade ago. They’ve done okay.

But nothing’s changed along the way.

That’s not a plan. That’s drift.

• Still sitting heavy in the G Fund “just in case”?

• Forgot your L Fund end-date is still set to 2040, even though you’re leaving at 57?

• Never switched to Roth contributions, even though you’re in your highest earning years?

The bias here is simple: if it hasn’t broken yet, you assume it’s working.

2️⃣ The Overthink Spiral

(Choice overload)

The more funds you have to pick from, the worse the outcome. That’s what Harvard researchers found.

Why?

Because more options = more hesitation. And hesitation leads to default settings. (Which is exactly where TSP money goes to underperform.)

If you’ve ever said “I just need to figure it all out first” and then did… nothing—you’ve been here.

3️⃣ The “Next Year” Lie

(Present bias)

You know you should contribute more. But it can wait.

You’ll bump your percentage after the promotion, after the mortgage settles, after the holidays.

You won't. Not unless you break the loop.

This bias favors immediate comfort over future payoff—even when we know the math.

Bottom Line

These aren’t rookie mistakes.

They’re human defaults—and they work against you unless you call them out.

You don’t need to overhaul your TSP.

You just need to start catching yourself before the bias takes the wheel.

—Federal Wealth Retirement

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