Running out of money linked to fear of death

I retired earlier than I planned because I couldn't find a job. My standard of living has certainly decreased, but I am much happier. I can get enough sleep, so I feel much better. And I don't have to deal with abusive managers.

I did save money when I had a decent paying job (not during the time I worked as a server at Waffle House). I am reluctant to buy an annuity because I don't trust financial institutions not to take money from me and a lot of other people, pay high incomes to their executives, then declare bankruptcy.

Public Release: 28-Mar-2016
Running out of money linked to fear of death
Society for Consumer Psychology

Roughly 52 percent of American households will not have enough retirement income to maintain their standard of living if they retire at 65.

The reason? People are afraid of thinking about their own death, according to findings in a new study published online in the Journal of Consumer Psychology. Fear of death tempts people to avoid making decisions about how to manage their savings during retirement.

Researchers from Boston College in Massachusetts decided to investigate why so few people choose to invest in annuities, a guaranteed steady stream of income during retirement. The public's lack of interest in annuities, known as the "annuity puzzle," has stumped researchers for decades.

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Annuities are likely not the only decision retirees may be avoiding due to fear of death, Salisbury said. The findings could also have implications for decisions about estate planning, wills and life insurance.