This paper examines two behavioral factors that diminish people's ability to value a life-time income stream or annuity … complexity, we provide the first causal evidence that increasing the complexity of the annuity choice reduces respondents …' ability to value the annuity, measured by the difference between the sell and buy values people assign to the annuity. We also …

A recent US Treasury regulation allowed deferred longevity income annuities to be included in pension plan menus as a …

regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension … investment decisions to fund managers selected by plan sponsors. Including these funds in retirement saving menus raised equity …