Big_Hitter
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Came across this yesterday when I was writing something for w*rk.
I think this is the first time that an attempt has been made to study the psychology behind the annuity versus lump sum decision. People are afraid to think of their own deaths so they default to a lump sum. Super interesting. I guess people need more retirement counseling to overcome this anxiety.
Solving the Annuity Puzzle: The Role of Mortality Salience in Retirement Savings Decumulation Decisions - Forthcoming Articles - Elsevier
"We propose mortality salience - increased accessibility of death-related thoughts - as one previously unexplored explanation for the annuity puzzle, the low rate at which retirees buy annuities even though economists recommend annuities as an optimal decision"
I think this is the first time that an attempt has been made to study the psychology behind the annuity versus lump sum decision. People are afraid to think of their own deaths so they default to a lump sum. Super interesting. I guess people need more retirement counseling to overcome this anxiety.
Solving the Annuity Puzzle: The Role of Mortality Salience in Retirement Savings Decumulation Decisions - Forthcoming Articles - Elsevier
"We propose mortality salience - increased accessibility of death-related thoughts - as one previously unexplored explanation for the annuity puzzle, the low rate at which retirees buy annuities even though economists recommend annuities as an optimal decision"