BEHAVIORAL RISK TOLERANCE IN U.S. RETIREMENT PLANNING VS. PROPERTY INSURANCE: A COMPARATIVE ANALYSIS

This research examines the contrasting expressions of behavioral risk tolerance in two major financial domains: U.S. retirement planning and property insurance. While both sectors involve individual choices under uncertainty, they elicit distinct patterns of behavior due to differences in time horizon, perceived risk, and regulatory structures. Using comparative analysis grounded in behavioral finance, the study explores how factors such as loss aversion, framing effects, and familiarity bias influence decisions to invest in retirement plans versus insure physical assets. The paper incorporates national survey data, policy uptake trends, and historical events (e.g., market crashes, natural disasters) to identify psychological and demographic drivers. It also evaluates how automated tools and AI-driven platforms could better align product offerings with individual risk profiles. By highlighting divergences and overlaps in risk behavior across the two domains, this study provides insights for financial advisors, insurers, and policymakers seeking to promote more rational, personalized financial planning.