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

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.

August 2008

This two phase study examined how to motivate women to save for retirement. The quantitative first phase validated findings regarding the existence of distinct personality types among women regarding retirement saving.