Question Design Matters: Presented Response Options Influence Reported Financial Planning Horizons

Financial surveys often include planning horizon questions to understand people’s financial decisions. Response options vary, seemingly assuming no effects on reported planning horizons. However, our U.S.-wide survey (N = 5,175) revealed shorter reported planning horizons when response options were short-range (from less than a week to longer than next year) rather than mid-range (from next month or less to longer than 10 years), or long-range (from next year or less to longer than 20 years). The mid-range condition elicited planning horizons that were most similar to an open-ended condition thought to capture natural thinking, had better predictive validity, and low respondent burden.