Behavioral aspects in social security |
Behavioral barriers to the expansion of the pension market |
“The behavioral barriers perceived by the interviewees partially or totally corroborate the results of the studies by Bongini and Cucinelli (2019Bongini, P., & Cucinelli, D. (2019). University students and retirement planning: never too early.International Journal of Bank Marketing.), Van Rooij et al. (2011Van Rooij, M. C., Lusardi, A., & Alessie, R. J. (2011). Financial literacy and retirement planning in the Netherlands.Journal of Economic Psychology, 32(4), 593-608.), Harrison et al. (2006Harrison, T., Waite, K., & White, P. (2006). Analysis by paralysis: the pension purchase decision process.International Journal of Bank Marketing.), Sourdin (2008Sourdin, P. (2008). Pension contributions as a commitment device: Evidence of sophistication among time-inconsistent households.Journal of Economic Psychology, 29(4), 577-596.) and Ongena and Zalewska (2018Ongena, S., & Zalewska, A. A. (2018). Institutional and individual investors: Saving for old age.Journal of Banking & Finance, 92, 257-268. ), but not those of Cobb-Clark et al. (2016Cobb-Clark, D. A., Kassenboehmer, S. C., & Sinning, M. G. (2016). Locus of control and savings.Journal of Banking & Finance, 73, 113-130.), Gourinchas and Parker (2002Gourinchas, P. O., & Parker, J. A. (2002). Consumption over the life cycle.Econometrica, 70(1), 47-89.), Finke and Huston (2013Finke, M. S., & Huston, S. J. (2013). Time preference and the importance of saving for retirement.Journal of Economic Behavior & Organization, 89, 23-34.), Dahlquist and Martinez (2015Dahlquist, M., & Martinez, J. V. (2015). Investor inattention: a hidden cost of choice in pension plans?.European Financial Management, 21(1), 1-19.), Benartzi and Thaler (2002Benartzi, S., & Thaler, R. H. (2002). How much is investor autonomy worth?.The Journal of Finance, 57(4), 1593-1616.), Gürdal et al. (2017Gürdal, M. Y., Kuzubaş, T. U., & Saltoğlu, B. (2017). Measures of individual risk attitudes and portfolio choice: Evidence from pension participants.Journal of Economic Psychology, 62, 186-203. ) and Hauff (2014Hauff, J. C. (2014). Trust and risk-taking in a pension investment setting.The International Journal of Bank Marketing, 32(5), 408-428.). Therefore, it was evidenced that the executives interviewed are unaware of a wide range of behavioral barriers, already identified in the literature, that limit the expansion of the pension market.“ |
Behavioral aspects in social security |
Potential and opportunities for expanding the pension market |
“The interviewees envisioned a set of possible actions for the expansion of the pension market that includes those recommended by Reyers et al. (2015Reyers, M., Van Schalkwyk, C. H., & Gouws, D. G. (2015). Rational and behavioural predictors of pre-retirement cash-outs.Journal of Economic Psychology, 47, 23-33.) and Mitchell and Utkus (2006Mitchell, O. S., & Utkus, S. P. (2006). How Behavioral Finance Can Inform Retirement Plan Design 1.Journal of Applied Corporate Finance, 18(1), 82-94.) but also includes many others not identified by the literatute. In this respect, there are indications of possible gaps to be filled by scientific studies. “ |