Abstract
This chapter argues that the lack of any visceral perception of risk or danger is the main obstacle to the retirement savings. It reviews theory and empirical evidence to document two claims: that affect is the wellspring of action; and that perceived risk, particularly visceral reactions to risky situations, has little correspondence to other measures of risk. It concludes by considering the implications of psychological models of decisionmaking for designing procedures or institutions that improve on the current situation.
Original language | English (US) |
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Title of host publication | Pension Design and Structure |
Subtitle of host publication | New Lessons from Behavioral Finance |
Publisher | Oxford University Press |
ISBN (Print) | 0199273391, 9780199273393 |
DOIs | |
State | Published - Jan 1 2005 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- General Economics, Econometrics and Finance
Keywords
- Decisionmaking
- Pension saving
- Retirement planning
- Risk management
- Risk perception