Behavioral Finance

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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

January 2013

Annuities are not popular despite providing valuable insurance against outliving one’s savings.

November 2010

Advisors need to understand the way investors think about decisions and the process through which decisions are made.

December 2008

Despite agreement among experts that many consumers should place a high value on life annuities and related products that insure against longevity risk, few consumers voluntarily annuitize their retirement savings.

Research Reports

June 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.

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.