Pereira, João PedroLourenço, Ana Filipa Duarte2016-03-012016-03-012016-01http://hdl.handle.net/10362/16596This study centers on the assessment of psychological value of guarantees in pension products and the behavior biases associated with choice. When a guarantee on a product increases from 99% to 99,5% less than half of respondents show willingness to pay in contrast with 73% when going from 99,5% to 100%. Out of 105 respondents, 55 show that their choices concerning pension products are inconsistent with classic utility theory. Financial background proves insignificant thus pointing to behavioral biases. As individuals make choices that leave them worse-off, we argue that pension plan design would highly benefit from public policy interventions.engPensionsUncertaintyChoiceBehaviormaster thesis201473429