Spending from regulated retirement drawdowns: The role of implied endorsement
Scandinavian Journal of Economics 123(3), 810–847
50 Pages Posted: 19 Apr 2018 Last revised: 30 Nov 2021
Date Written: October 17, 2019
We fielded an online survey in the Netherlands and Australia to explore the influence of an implied endorsement nudge, conveyed by a government regulated drawdown from pension wealth, on spending patterns in retirement. The implied endorsement nudge was effective. It influenced the preferred retirement spending patterns of around 30\% of survey participants, particularly those with fewer financial resources and low pension capability. Australian participants were more likely to follow the nudge where it was framed as implicit government advice while the Dutch were more likely to respond to a suggestion that the nudge was a recommendation from peers. Our results provide support for a regulated drawdown rule as part of a strategy to guide spending patterns in retirement.
Keywords: decumulation policy, regulated drawdowns, implied endorsement, peer effects
JEL Classification: D14, D90, J14, J26
Suggested Citation: Suggested Citation