TY - JOUR T1 - Framing Lifetime Income JF - The Journal of Retirement SP - 27 LP - 37 DO - 10.3905/jor.2013.1.1.027 VL - 1 IS - 1 AU - Jeffrey R. Brown AU - Jeffrey R. Kling AU - Sendhil Mullainathan AU - Marian V. Wrobel Y1 - 2013/06/30 UR - https://pm-research.com/content/1/1/27.abstract N2 - We provide evidence that individuals optimize imperfectly when making annuity decisions, and that this result is not driven by loss aversion. Annuities are more attractive when presented in a consumption frame rather 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.TOPICS: Retirement, wealth management, risk management ER -