Framing Lifetime Income
We provide evidence that individuals optimize imperfectly when making annuity decisions, and this result is not driven by loss aversion. Life annuities are more attractive when presented in a consumption frame than in an investment frame. Highlighting the purchase price in the consumption frame does not alter this result. The level of habitual spending has little interaction with preferences for annuities in the consumption frame. In an investment frame, consumers prefer annuities with principal guarantees; this result is similar for guarantee amounts below, at, and above the purchase price. We discuss implications for the retirement services industry and its regulators
Year of publication: |
2019
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Authors: | Brown, Jeffrey R. |
Other Persons: | Kling, Jeffrey R. (contributor) ; Mullainathan, Sendhil (contributor) ; Wrobel, Marian (contributor) |
Publisher: |
[2019]: [S.l.] : SSRN |
Subject: | Konsumentenverhalten | Consumer behaviour | Prospect Theory | Prospect theory | Private Altersvorsorge | Private retirement provision | Lebensversicherung | Life insurance | Lebenseinkommen | Lifetime income |
Saved in:
freely available
Extent: | 1 Online-Ressource (24 p) |
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Series: | NBER Working Paper ; No. w19063 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 2013 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012865318