TY  - JOUR
AU  - Clark, Robert L
AU  - Hammond, Robert G
AU  - Vanderweide, David
TI  - Navigating Complex Financial Decisions at Retirement: Evidence from Annuity Choices in Public Sector Pensions
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 25129
PY  - 2018
Y2  - October 2018
DO  - 10.3386/w25129
UR  - http://www.nber.org/papers/w25129
L1  - http://www.nber.org/papers/w25129.pdf
N1  - Author contact info:
Robert L. Clark
Poole College of Management
Box 7229
North Carolina State University
Raleigh, NC 27695
Tel: 919/515-4568
Fax: 919/515-6943
E-Mail: robert_clark@ncsu.edu

Robert G. Hammond
Department of Economics, Finance and Legal Studies
University of Alabama
E-Mail: robert.hammond@cba.ua.edu

David Vanderweide
Fiscal Analyst
Fiscal Research Division
North Carolina General Assembly
Raleigh, NC  27601
Raleigh, NC
USA
E-Mail: david.vanderweide@ncleg.net
M1  - published as Robert L. Clark, Robert G. Hammond, David Vanderweide. "Navigating Complex Financial Decisions at Retirement: Evidence from Annuity Choices in Public Sector Pensions," in Robert L. Clark and Joseph P. Newhouse, organizers, "Incentives and Limitations of Employment Policies on Retirement Transitions" Cambridge University Press, Journal of Pension Economics and Finance, vol. 18, special issue 4 (2019)

M3  - presented at "Incentives and Limitations of Employment Policies on Retirement Transitions", August 10-11, 2018
AB  - Choices regarding the disposition of wealth at retirement can have substantial implications for retirement income security.  We analyze the factors determining annuity option choices offered by a public sector defined pension plan with no default annuity option.  Using combined administrative records and survey data, we explore the role of individual and household characteristics as well as risk preferences, time preferences, and financial literacy. The evidence is consistent with predictions over which households might benefit most from each annuity option.  Comparing retirees who chose different annuities, we find that these groups of retirees report very different levels of well-being in retirement.
ER  -