How Life Expectancy Perceptions Affect Annuity Purchases
January 31, 2023 by Allison Bell
Researchers’ own “objective” life expectancy estimates have a bigger correlation with how likely U.S. consumers are to own annuities than the consumers’ own life expectancy estimates do, researchers say.
When Karolos Arapakis and Gal Wettstein calculated a consumer’s life expectancy themselves, one year of extra life expectancy correlated with an increase in the probability that a consumer would ever buy an annuity by 0.2 percentage points, to 9%, according to a new working paper.
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Originally Posted at ThinkAdvisor on January 30, 2023 by Allison Bell.
Categories: Industry Articles