The Psychological Impact of Annuities: Can Pension Payout Choice Influence Health Behavior?

Policy makers around the world are discussing pension systems and debating whether to encourage or mandate annuities, where retirement savings are paid out as lifelong income. We find evidence that, compared to receiving a lump-sum, receiving lifelong income where total payout increases with length of life can boost health-related behavior.



Citation:

Anja Schanbacher, David Faro, Simona Botti, and Shlomo Benartzi (2018) ,"The Psychological Impact of Annuities: Can Pension Payout Choice Influence Health Behavior?", in NA - Advances in Consumer Research Volume 46, eds. Andrew Gershoff, Robert Kozinets, and Tiffany White, Duluth, MN : Association for Consumer Research, Pages: 775-776.

Authors

Anja Schanbacher, London Business School, UK
David Faro, London Business School, UK
Simona Botti, London Business School, UK
Shlomo Benartzi, University of California Los Angeles, USA



Volume

NA - Advances in Consumer Research Volume 46 | 2018



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