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This paper examines the association between financial consumers’ sense of purpose and the consistency of their choices when they make investment decisions. The data are based on two controlled experiments conducted in South Korea. The first main result shows that financial consumers’ psychological well‐being has a positive association with choice consistency. The second result confirms the causal relationship between sense of purpose and choice consistency.

Using international country‐level data, this paper shows that demographic ageing is likely to significantly expand the insurance industry. This expansion is driven by the increased need to secure earnings for post‐retirement consumption, the desire to hedge against risks associated with increasing age, and the older generations risk aversion increasing the demand for safer assets such as insurance and pension products. Moreover, such an expansion of the insurance industry is particularly apparent in financially liberalised countries. This is because risk and asset management associated with insurance and pension products could be facilitated and more effective in liberalised financial markets.