How default effects and decision timing affect annuity uptake and health consciousness

Author:

Unger FranziskaORCID,Steul-Fischer Martina,Gatzert Nadine

Abstract

AbstractAnnuities provide a lifelong income stream and can therefore help individuals to mitigate the risk of outliving their savings, a highly topical issue in the context of increasing life expectancies. Given that real-world annuitization rates remain relatively low, we investigate the influence of behavioral biases on people’s choice between a lifelong annuity and a lump sum payout. In so doing, we focus on the impact ofdefault effectsdue to a preselected annuity option (default option) and the impact of thedecision’s timing(decisions on annuitization taken by younger individuals refer to a distant future, those taken by older individuals to a near future) on annuity uptake and health consciousness. We used a scientific survey panel to conduct an online experiment with a diversified sample of 339 participants (55.2% female, average age = 42.5 years). Our results show that the timing of the decision moderates the default effect on annuity uptake, in that the effect of a preselected (default) annuity option is stronger for distant-future decisions (i.e., choice of annuity instead of lump sum at retirement made by younger participants purchasing a deferred annuity) than for near-future decisions made by older individuals who are closer to retirement. We further find that the default effect moderates health consciousness after choosing an annuity. Health consciousness is stronger in the no-default condition than in the annuity default condition.

Funder

Friedrich-Alexander-Universität Erlangen-Nürnberg

Publisher

Springer Science and Business Media LLC

Subject

Economics and Econometrics,Finance,General Business, Management and Accounting,Accounting

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3