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Planning Fallacy

People consistently underestimate how long tasks will take — even when they have direct experience of similar tasks running over. The imagined best-case scenario displaces the evidence of actual past experience. In UX, this bias determines when users abandon flows, how they respond to time claims in onboarding copy, and how they experience discovering steps they did not anticipate.

5 min readOnboarding · Forms · Copy

In 1979, Daniel Kahneman and Amos Tversky described a consistent pattern: when people plan a task, they imagine an uninterrupted, best-case execution of it, and base their time estimate on that scenario. They do not ask how long equivalent tasks have actually taken in the past. The estimate describes an ideal. The experience delivers reality.

Kahneman later framed this as the difference between the inside view and the outside view. The inside view is what planners instinctively use: imagine this specific task, construct a plausible scenario of completion, derive an estimate. The outside view asks: what has actually happened to users who attempted this task before? The outside view produces more accurate predictions every time. It is almost never used.

For UX designers, the planning fallacy operates on both sides of the screen. Users apply it to every flow they enter — “this signup will take a minute” — and abandon when reality exceeds the estimate. Designers apply it to every flow they build — imagining an ideal user who reads every instruction and completes in one sitting. The gap between the imagined user and the real one is where most onboarding abandonment lives.

✦ Key takeaways
✓
Users abandon when actual time exceeds their estimate — and attribute the failure to the product. A user who estimates two minutes and encounters step 5 of 8 at the four-minute mark concludes the product is poorly designed. Flows that set accurate expectations have measurably lower mid-flow abandonment.
✓
Discovering unexpected steps mid-flow is more damaging than knowing about them upfront. A user told a flow has 6 steps processes that as a known commitment. The same user who expects 3 steps and discovers 6 mid-flow experiences a planning fallacy violation.
✓
Missing required information is the most common cause of mid-flow abandonment. A field requiring a VAT number or API key that the user does not have at hand is a planning fallacy failure. The corrective is surfacing what users need before they start.
“Plans are best-case scenarios. The outside view asks: what actually happened to users who attempted this task before?”
— Daniel Kahneman, Thinking, Fast and Slow, 2011

Time claims in onboarding — best-case vs observed median

“Get started in 2 minutes” is derived from the inside view: a designer imagining a user who reads clearly, has everything at hand, makes no errors. The observed user takes considerably longer. When the gap between the promise and the experience is felt, it is attributed to the product.

Maze's 2023 product onboarding benchmark found that products with inaccurate time claims had 23% higher early drop-off than those with accurate estimates. Both phones below show the same six-step flow.

Inside view -- best-case time claim
9:41
⚡
Ready in
2 minutes
Quick setup. No credit card needed.

Tap “Get started.” A timer tracks elapsed time. Notice when it exceeds the 2-minute promise.

Outside view -- actual median completion data
9:41
📅
About 8 minutes
to set up
Based on how long it typically takes our users.
You'll need
✉️Your work email
🏢Your company name
🔗One tool to connect (Slack, GitHub…)

Time claim based on actual sessions. The “You'll need” list lets users check readiness.

The accurate estimate does not reduce signups. Users who proceed after seeing an honest time estimate complete onboarding at higher rates — because they opted in with accurate expectations rather than discovering mid-flow that the task was longer than anticipated.


Step revelation — discovering the flow is longer than expected

When a user enters a multi-step flow without knowing its total length, they apply the planning fallacy immediately: they form an implicit estimate based on the first step. When that estimate is wrong, each unexpected step is experienced as a violation. Nielsen Norman Group found that users who knew total step count upfront had 31% higher completion rates.

Steps hidden -- user estimate forms from first step
app.yourapp.com/setup
Setup
Name your workspace
How your team will identify your space.

Click “Next” repeatedly. Notice when it feels like it should have ended.

Steps visible -- user makes an informed commitment
app.yourapp.com/setup
1
2
3
4
5
Step 1 of 5
Name your workspace
How your team will identify your space.
~4 min remaining

Total scope shown from step one. Each step is expected, not a surprise.

When the total is visible from step 1, users make a commitment to the full scope. When steps are hidden, step 4 is a surprise, and every surprise step is experienced as a planning fallacy violation: the task is more than anticipated, and the product is responsible.


Required information mid-flow — the most common abandonment cause

The planning fallacy's most damaging UX manifestation is the mid-flow blocker: a required field that asks for information the user does not have at hand. API keys, VAT numbers, bank routing codes — these are outside the user's inside view of the task. Baymard Institute identified “required to look up information” as the second most common reason for checkout abandonment.

Required info discovered mid-flow
app.yourapp.com/connect/stripe
Step 4 of 6 — Connect Stripe
Enter your Stripe secret key
Find this in your Stripe Dashboard under Developers → API keys. Starts with sk_live_

⚠ You'll need to log into your Stripe account to find this

User is at step 4 of 6. The API key was not in their inside view. Most users close the tab.

Required info shown before the flow starts
app.yourapp.com/connect/stripe
S
Connect Stripe
Takes about 3 minutes
Before you start — you'll need
Your Stripe secret key
Dashboard → Developers → API keys (starts with sk_live_)
Admin access to your Stripe account
You’ll need permission to create restricted keys

Prerequisites surfaced upfront. Click the checkboxes to confirm readiness.

The prerequisite screen does not add friction — it relocates it. The effort of finding the Stripe API key is the same whether encountered mid-flow or before. The difference is that mid-flow, it is experienced as a violation against an existing investment. Before the flow, it is part of the upfront scope.


✓ Apply it like this
→Base time claims on actual median session data, not best-case imagination. Accurate estimates produce higher completion rates.
→Make total step count visible from step one. Users who know they committed to 5 steps are not surprised by step 4.
→Surface required information before the flow begins. A "you'll need" checklist relocates friction to pre-commitment.
→Use step-level abandonment data as the outside view of your own flows. Where users drop off is where their estimate was exceeded.
✗ Common mistakes
→"2 minutes," "quick setup," "get started instantly" -- time claims from the inside view of an imagined frictionless user.
→Multi-step flows that reveal steps one at a time with no visible total. Each unexpected step is a planning fallacy violation.
→Required credentials or external information discovered mid-flow after effort has been invested. The hit at step 4 is more damaging than at step 0.
→Designing flows for the ideal user who reads every instruction, has everything ready, and completes in one sitting.

Kahneman, D., & Tversky, A. (1979). Intuitive prediction: Biases and corrective procedures. TIMS Studies in Management Science, 12, 313–327. · Lovallo, D., & Kahneman, D. (2003). Delusions of success. Harvard Business Review, 81(7), 56–63. · Maze (2023). Product Benchmarks: Onboarding. · Baymard Institute (2022). Checkout Usability: Why Users Abandon.