Why don't people insure late life consumption
Subtitle: a framing explanation of the under-annuitization puzzle
By: Jeffrey R. Brown ... [et al.].
Contributors: Brown, Jeffrey R. 1968-; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13748; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13748.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Rational models of risk-averse consumers have difficulty explaining limited annuity demand.  We posit that consumers evaluate annuity products using a narrow "investment frame" that focuses on risk and return, rather than a "consumption frame" that considers the consequences for lifelong consumption.  Under an investment frame, annuities are quite unattractive, exhibiting high risk without high returns.  Survey evidence supports this hypothesis: whereas 72 percent of respondents prefer a life annuity over a savings account when the choice is framed in terms of consumption, only 21 percent of respondents prefer it when the choice is framed in terms of investment features"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/11/2008.

Includes bibliographical references.

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