Seeking solutions to Vulnerability in Old Age: Preferences, constraints, and alternatives for coverage under Peru's pension system

Exploiting new data from a survey and behavioral experiment conducted in Peru we analyze individuals?preferences for securing income in old age. We identify a group that is unrationed by the mandate to save in Peruç—´ pension system, and draw insights from their affiliation and contribution behavior. Among the unrationed, those who are more tolerant of risk, have more children, and have a greater share of housing in their accumulated assets are less likely to affiliate and/or contribute to the formal pensions system. Further, the less risk tolerant choose private individual retirement accounts over a publicly administered pension system.