 Indulgence, Self-Control, and Annuity Preferences: Annuity Choices by Members of the Slovak-Funded Private Pension PillarSocial Sciences, 2023, vol. 12, issue 3, 1-17 Abstract: This paper employs data from an original survey to analyse the annuity preferences of members of the Slovak-funded private pension pillar. The focus is on the impact of socioeconomic variables as well as various behavioural attitudes upon annuitisation decisions. The research first considers some well-known behavioural factors (framing, mental accounting) and then turns to some underresearched traits (indulgence, self-control) and behaviours (compulsive shopping, saving habits) and links them to annuity choices. Moreover, the research studies alternative allocations of a lump sum and relates them to annuitisation decisions. Indulgence emerged as a significant negative predictor of annuitisation. This result likely refers to preferences towards hedonic lifestyles in early retirement. Interestingly, low self-discipline was also significant but positively related to an intention towards annuity purchases. People who are aware of their low financial discipline may introduce internal self-protection mechanisms and resort to tried and tested financial products to avoid anticipated feelings of regret and desperation. Annuitisation, in this case, is a regret avoidance behaviour. Keywords: annuities; lump sum; indulgence; self-control (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:gam:jscscx:v:12:y:2023:i:3:p:190-:d:1103184 Access Statistics for this article Social Sciences is currently edited by Ms. Yvonne Chu More articles in Social Sciences from MDPI |
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