Stock market returns and annuitization

• 成果类型: Article
• 署名作者: Previtero, Alessandro
• 署名单位: Western University (University of Western Ontario)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.04.006
• 发表日期: 2014
• 页码: 202-214
• 关键词: Annuities; retirement income; Myopic extrapolation; elderly

摘要

I investigate the strong negative relation between recent stock returns and the annuitization of retirement savings using a novel data set with over 100,000 actual payout decisions. After controlling for several standard explanations (e.g., wealth effects), I present evidence supporting naive beliefs and extrapolation from past returns. The effect of recent returns on annuitization dramatically increases with age, confirming that the elderly rely most heavily on recent information. My results provide insights into how beliefs are formed in old age and have implications for the design of public policies seeking to promote annuitization. (C) 2014 Elsevier B.V. All rights reserved.