We hypothesise and confirm a substantial framing effect in relation to whether people opt for an annuity on retirement. Two laboratory experiments were conducted in collaboration with a national pensions regulator. Individuals demanded a higher annuity rate when pensions were initially conceived...

People underestimate long-term growth in savings because they linearise exponential growth - a phenomenon known as exponential growth bias (EGB). This bias has implications for multiple financial decisions, particularly those relating to pensions. We hypothesised that underestimation might be...

This paper investigates whether exposure to explanatory diagrams can affect a major financial decision. In a controlled experiment, participants were given pension benefit statements with or without one or two diagrams, before answering incentivised questions that measured recall, comprehension...