Time inconsistency can have significant impacts on financial planning and personal savings behavior:

**Impact on Financial Planning:**

- Time inconsistent preferences can lead people to make decisions that don't align with their long-term best interests. For example, people may overspend or undersave relative to their optimal lifetime financial plan.

- This can make it difficult for individuals to stick to a coherent financial plan over time, as their preferences and priorities shift.

- It can also complicate financial advising and the design of retirement savings programs, as planners need to account for potential self-control issues and changing preferences.

**Impact on Personal Savings Behavior:**

- Time inconsistent preferences, such as hyperbolic discounting, can lead people to heavily prioritize short-term consumption over long-term saving.

- This can result in inadequate retirement savings, as people procrastinate saving and contribute less than they rationally know they should.

- Behavioral interventions like automatic enrollment, default contribution rates, and commitment devices can help counter time inconsistency and improve savings outcomes.

- However, even with these tools, time inconsistency remains a challenge for many people in planning and sticking to their preferred savings patterns.