Behavioral Finance

Behavioral Finance Icon
The psychology of decision making

How information is presented, or “framed,” and other personal biases affect decision-making. The TIAA Institute focuses on such issues as how to motivate people to make decisions about when to claim Social Security, whether or not to annuitize, and how to save for retirement. 

Insights

May 2016

More than 30 million Americans are projected to retire in the next decade – and most have not saved nearly enough for retirement. Moreover, almost half of all Social Security recipients claim benefits at the earliest possible age (62), which can greatly reduce their total lifetime benefits.

November 2015

As employer-sponsored savings vehicles like 401(k)s become a major source of retirement income for millions of Americans, personal biases can have an outsized impact on retirement security.

July 2013

Given the widespread transition from defined benefit (DB) to defined contribution (DC) retirement plans, Americans increasingly face the challenge of assessing whether their saving behavior is likely to provide a secure retirement.

Research Reports

September 2013

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.

August 2013

Financial product ratings are intended to summarize relevant information in a manner that assists in decision-making, but may be harmful. Ratings are often assigned within categories; ratings across categories may not be comparable.

January 2011

A growing literature shows how consumers make mistakes in a variety of different settings pertinent to financial decision-making.