The second obstacle is loss aversion. We know that people hate losing and, in particular, hate to see their paychecks go down. Based on the findings from our fairness study, we also know that in this domain, loss aversion is measured in nominal dollars, that is, without adjusting for inflation. So, if we could figure out a way that employees would not feel any cuts to their paychecks, there would be less resistance to saving more.
