Longevity Perceptions and Saving Decisions during the COVID-19 Outbreak: An Experimental Investigation
AbstractWe experimentally study individuals' perceptions about and advice to others regarding retirement savings and annuitization during the pandemic. Many people recommend that others save more for retirement, but those most affected by the pandemic tell others to save and annuitize less. We investigate two possible channels for this result and show that the pandemic does not substantially alter optimism regarding survival probabilities. Hence, we conclude that economic factors are driving our results. Consequently, some financial ramifications of the COVID-19 outbreak are yet to be revealed, as the pandemic is having longer-term effects on people's willingness to save and annuitize.
CitationHurwitz, Abigail, Olivia S. Mitchell, and Orly Sade. 2021. "Longevity Perceptions and Saving Decisions during the COVID-19 Outbreak: An Experimental Investigation." AEA Papers and Proceedings, 111: 297-301. DOI: 10.1257/pandp.20211001
- J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
- D15 Intertemporal Household Choice; Life Cycle Models and Saving
- J26 Retirement; Retirement Policies
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- I12 Health Behavior