Annuities, Financial Literacy and Information Overload
College of William and Mary - Mason School of Business
affiliation not provided to SSRN
November 11, 2010
Pension Research Council WP 2010-33
This chapter investigates how financial literacy and information overload influence the decision to purchase an annuity and how they relate to subsequent confidence and satisfaction. Using a dataset from a large-scale experiment, we find that as financial literacy increases, information overload decreases. In addition, people who experience higher levels of information overload are less confident in their choice and are less satisfied with their decision. We recommend that educators and retirement plan architects consider simplifying the decision environment in addition to improving financial literacy with the goal of increasing investor confidence and satisfaction.
Number of Pages in PDF File: 41
Keywords: annuity, financial literacy, investment, education, retirement, market, annuitiy, annuitizeworking papers series
Date posted: November 13, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.328 seconds