of Health, Ageing and Retirement in Europe (SHARE) with life table data from the Human Mortality Database … empirical evidence that individuals are indeed aware of longevity risk and that this awareness affects their savings decisions …. These results are based on a data set that matches subjective survival expectations and savings indicators from the Survey …

) based on subjective survival expectations elicited in the Survey of Health, Ageing and Retirement in Europe (SHARE) and … matching data on longevity risk from the Human Mortality Database. We find a positive relationship between the forecast … longevity risk. Our analysis of savings behavior shows that the dispersion in survival estimates is primarily explained by …

for and control over the accumulation and use of savings for retirement. …

provide evidence that individuals mis-perceive their mortality risk, and study the demand for annuities in a setting where …

may either choose to receive annuity payouts, calculated based on a mortality table agreed to at contract inception, or … receive the accumulated capital as a lump sum. Considering stochastic mortality improvements, such an option could be of … substantial value. Whenever mortality improves less than originally expected, the policyholder will choose the lump sum and buy an …

the capital accumulated. Considering stochastic mortality improvements, the lump-sum option could be of potential value … for the policyholder. Whenever mortality improves less than expected at contract inception, the policyholder will choose … stochastic mortality. Our results are relevant for individual retirement planning, pension system design, and insurance pricing …