Default and naive diversification heuristics in annuity choice

  title={Default and naive diversification heuristics in annuity choice},
  author={Hazel Bateman and Christine Eckert and Fedor Iskhakov and Jordan J. Louviere and Stephen E. Satchell and Susan Thorp},
  journal={Australian Journal of Management},
  pages={32 - 57}
Retirement income stream products are difficult for consumers to choose because of their high perceived risk, irreversibility, high expenditure, little opportunity for social learning and distant consequences. Prior literature is unclear about consumers’ use of heuristics in decumulation decisions or whether sociodemographics can help identify vulnerable consumers. In the context of Australia’s retirement income arrangements, we examine choices of life annuities and phased withdrawal products… 

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