Saving for Old Age: Longevity Annuity Buying Intention of Italian Young Adults

The aim of this study was to investigate the longevity annuity buying intention on the part of Italian young adults aged 25 to 35 by adopting the Theory of Reasoned Action. Using a structural equation modeling approach based on the method of Partial Least Squares, a confirmatory test of the model construct validity was performed, including behavioral beliefs and normative beliefs. The results obtained from 7,480 Italian young adults revealed that the theory of reasoned action had predictive power for the intention of buying longevity annuities. The cause-effect relationship of behavioral and normative beliefs was confirmed. Intention to purchase a longevity annuity was determined to be affected by both attitude toward buying and the subjective norm with a greater influence of social pressure over attitude. Finally, results showed that intention to buy longevity annuity policies was significantly moderated by three background factors, namely, gender, annual household income, and educational attainment. Research, policy, and managerial implications of the findings are discussed and suggestions for further research provided.