Annuity or Lump Sum: Getting Retiring Smokers to Make Better Savings Distribution Decisions

Abigail Hurwitz, Yaniv Hanoch, Andrew Barnes and Orly Sade

Chapter 7 in Behavioral Finance:Beyond the Basics, 2024, pp 161-183 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Despite the link between smoking and reduced lifespan, the effect of smoking on retirement savings withdrawal remains understudied. We investigate the impact of various leaflets on smokers’ retirement choices: (a) smoker vs. non-smoker life expectancies, (b) smoking’s health effects, (c) health impact with government’s advice to consider health upon retirement, or (d) combined smoker’s life expectancy and health info. Analyzing data from 2,000 smokers, we find that those informed about smoking’s lifespan impact, alone or with health consequences, were likelier to opt for lump sum over annuity. This suggests that informing smokers about smoking’s harms can influence their retirement choices.

Keywords: Market Efficiency; Cross-Sectional Anomalies; Arbitrage Trading Activity; Exploiting Mispricing Dividends; Stock Repurchase; Annuity; Financial Decisions; Lump Sum. Retirement Savings; Behavioral Factors; Disruptive Innovation; Market Transition; Investments; Analyst Recommendations; Coverage Initiation; Stock Market Reaction; Artificial Intelligence; Professional Investors (search for similar items in EconPapers)
JEL-codes: G4 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811290633_0007 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811290633_0007 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789811290633_0007

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().