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Monday, August 2 • 10:45am - 12:15pm
1E2 What matters in the annuitization decision?

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Mohamad Hassan Abou Daya, Grenoble Ecole de Management; Carole Bernard, Grenoble Ecole De Management

We conduct a simultaneous test for several rational and behavioral factors which have been hypothesized to affect the uptake of life annuities on a sample of American individuals. In addition, we investigate whether analysts’ short-term stock market expectations affect the decision to annuitize retirement wealth. We provide evidence that the effect of such expectations depends on the level of trust in them. We attribute our findings to the availability heuristic and present bias. Our results provide guidance for policymakers and annuity providers as well as venues for future research.

Discussant
XJ

Xiaochen Jing

University of Wisconsin - Madison

Presenters
MH

Mohamad Hassan Abou Daya

Grenoble Ecole de Management
CB

Carole Bernard

Professor, Grenoble Ecole de Management



Monday August 2, 2021 10:45am - 12:15pm EDT

Attendees (9)