Solving the Annuity Puzzle: the Role of Mortality Salience in Retirement Savings Decumulation Decisions

Linda Salisbury, Boston College, USA
Gergana Nenkov, Boston College, USA
We propose a novel explanation for the annuity puzzle - that the annuity decision makes people’s mortality salient, evoking thoughts of death and motivating them to defend against this threatening awareness by avoiding the annuity option. Across four experiments, we demonstrate the negative effect of mortality salience on annuity preference.
[ to cite ]:
Linda Salisbury and Gergana Nenkov (2015) ,"Solving the Annuity Puzzle: the Role of Mortality Salience in Retirement Savings Decumulation Decisions ", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 136-141.