Behavioral regularities in old age planning

Eric Bonsang and Joan Costa-Font

Post-Print from HAL

Abstract: Planning for old age needs involves ‘high stakes' decisions such as the choice of a retirement plan, generic saving and investment decisions alongside the take up of insurance for long-term care . We argue that these individual decisions are formed upon limited information and, result from beliefs about future needs that are often not well understood. This paper provides an overview of a number of behavioral ‘regularities' that illustrate areas where traditional economic approaches should include behavioral economic explanations to better understand and describe decisions for old age. These include the role of framing and reference points, the effects of misperception and behavioral learning, as well as the role of several biases such as optimism, present bias and overconfidence. We contend that choice architectures that incorporate such regularities can help making old age decisions.

Keywords: Optimism bias; Present bias; Framing; Optimism; Behavioral regularities; Old age care; Retirement; Financing long-term care; Cognitive bias (search for similar items in EconPapers)
Date: 2020-05
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published in Journal of Economic Behavior & Organization, 2020, 173, ⟨10.1016/j.jebo.2019.11.015⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Behavioral regularities in old age planning (2020)
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:hal:journl:hal-02895253

DOI: 10.1016/j.jebo.2019.11.015

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().