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

June 2018

Understanding the prevalence, diversity and predictive power of behavioral factors—deviations from classical assumptions about consumer choice—is critical for theory, research and policy.

June 2018

Conventional economic models assume that investors confronted with risky choices maximize expected utility; yet in the real world, people are prone to making predictable errors.

June 2018

As older Americans tap into their retirement funds, they often face a choice between receiving a smaller, immediate payout and a larger, future payout. How does memory affect these “intertemporal” choices?

Research Reports

December 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.

November 2015

Delaying increased contributions to a retirement plan can actually boost retirement savings, but it all depends on how the delay is positioned.

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.