Does the Formulation of the Decision Problem Affect Retirement?—Framing Effect and Planned Retirement Age

Abstract

The aim of the study is to fill the research gap in relation to one of the behavioral factors that have a potential impact on retirement decisions—the framing effect. A research question addressed in the study is whether the way in which the decision-making problem is formulated (the framing effect) influences decisions on the planned retirement age. To answer this question, an original research questionnaire was developed. It included a description of a hypothetical pension system and experimental vignette questions. The research was conducted on the basis of answers given by 1079 randomly selected respondents who were participants of the pension system in Poland before retirement. In the analysis of the results, non-parametric tests and multiple logistic regression were used to compare response distributions. As a result of the conducted research, it was proven that the framing effect significantly affects the extension of the planned retirement age. At the same time, it was found that loss framing affects pension decisions to a greater extent than gain framing. It has also been noted that women are more susceptible than men to the framing of pension decisions. An application conclusion resulting from the conducted research is indicated as the possibility of the intentional use of the framing effect by decision-makers in order to increase the effective retirement age.

Implementation of Non-state Pension Provision in Ukraine in the System of Strengthening Social Protection

“…The overall goal of the non-state pension provision system is to increase the efficiency of the pension system by forming pension savings in banks (Maj-Waśniowska & Jedynak, 2020;Achkasova et al, 2021), non-state pension funds (Levchenko, 2015;Achkasova, 2018;Luchko et al, 2019;Pukala et al, 2020;Jedynak, 2022) and insurance companies (Ostrowska-Dankiewicz, 2019;Płonka et al, 2020;Polinkevych et al, 2021) for citizens to receive additional pension payments through contributions and profits to increase their social security (Lutsyshyn et al, 2019;Jedynak, 2020). In case of using the international assessment of the poverty level of the population, according to which the cost of daily consumption is set at USD 5 (up to 4300 UAH per month), then 85.4% of Ukrainian pensioners as of January 01, 2021, received a pension in the amount lower, or at the level of this limitsup to UAH 5000.…”

Determinants of Preferred Retirement Age in an Aging Society

“…The statutory retirement age acts as a universal anchor, a reference point upon which individuals determine the gains and losses resulting from ceasing their professional activity earlier or later (Jedynak, 2022b;Knoll, 2011). An important issue is associated with the differences in weight people attach to these gains and losses (Sieczkowski, 2017).…”

Framing Effect in Tax Auditor Judgment (A Phenomenology Study)

“…The information presented in the form of gain and loss is a prospect theory model that uses framing explanations that are used to influence users in making decisions (Safiq et al, 2019). Framing effect is a cognitive bias that is well analyzed and empirically proven (Jedynak, 2022). It focuses on how the presentation of a decision-making situation impacts the decision-maker's choices.…”