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A Nudge to Quit? The Effect of a Change in Pension Information on Annuitization, Labour Supply, and Retirement Choices Among Older Workers

Johannes Hagen, Daniel Hallberg and Gabriella Sjögren Lindquist

No 209 [pre.], GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: We study the effects of two exogenous modifications in the Swedish pension system application form nudging individuals towards a fixed-term payout. Meanwhile, the set of available options and the default option - life annuity - were unchanged during the period under study. We examine the effects on individuals' payout decisions and the spillover effects on labour supply and other pensions using a difference-in-difference framework and detailed administrative data on actual payout decisions and a wide range of individual-level outcomes. Each modification increased the demand for the nudged payout by around 30 percentage points. The first modification also induced individuals to work less.

Keywords: annuity; pension; nudge; decision framing (search for similar items in EconPapers)
JEL-codes: D91 G41 J26 J32 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-age, nep-eur and nep-reg
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