How Longevity and Health Information Shapes Retirement Advice
We investigate how advisors’ own health and survival assessments, and information about their advisees’ health and survival probabilities, shape their recommendations regarding retirement spending and investment. Using experiments involving amateur and professional advisors, we show that advisors’ self-assessments have only mild effects on their recommendations, but they do respond differently when provided longevity and health information about their advisees. Moreover, amateur advisors mainly react to simple cues, while professional advisors are more sensitive to client-specific information. While many rely on informal advice from friends or family, amateurs often cannot accurately analyze and utilize key information needed to provide suitable advice.
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