Defined terms for the annuity market and lifetime income landscape.
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.
Time preference is an individual's disposition to weight present outcomes relative to future outcomes when comparing them; higher time preference means the future is discounted more steeply and present consumption is valued more strongly against future consumption of equivalent magnitude.
