Defined terms for the annuity market and lifetime income landscape.
Present bias is the tendency for individuals to give disproportionate weight to immediate rewards and costs relative to those in the future, producing choices that favor the near term more than a consistent time preference would predict.
Regret aversion is the tendency for individuals to weigh the anticipated cost of regret from a decision that turns out badly more heavily than a straightforward expected-outcome analysis would predict, producing choices that reduce the risk of regret even at the cost of expected value.
Status quo bias is the tendency for individuals to prefer the current state of affairs to any change from it, so that maintaining an existing arrangement is chosen even when a different arrangement would be selected on its merits.
