What makes annuitization more appealing?

• 成果类型: Article; Proceedings Paper
• 署名作者: Beshears, John; Choi, James J.; Laibson, David; Madrian, Brigitte C.; Zeldes, Stephen P.
• 署名单位: Stanford University; Yale University; Harvard University; Columbia University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2013.05.007
• 发表日期: 2014
• 页码: 2-16
• 关键词: annuity; pension; retirement income; framing

摘要

We conduct and analyze two large surveys of hypothetical annuitization choices. We find that allowing individuals to annuitize a fraction of their wealth increases annuitization relative to a situation where annuitization Is an all or nothing decision. Very few respondents choose declining real payout streams over flat or increasing real payout streams of equivalent expected present value. Highlighting the effects of inflation increases demand for cost of living adjustments. Frames that highlight flexibility, control, and investment significantly reduce annuitization. A majority of respondents prefer to receive an extra bonus payment during one month of the year that is funded by slightly lower payments in the remaining months. Concerns about later-life income, spending flexibility, and counterparty risk are the most important self-reported motives that influence the annuitization decision. (C) 2013 Elsevier B.V. All rights reserved.