Framing the Annuity as Bequest Protection
An Experimental Test
DOI:
https://doi.org/10.61190/fsr.v29i4.3463Keywords:
Framing effects, Bequest motive, Estate planning, AnnuitiesAbstract
Bequest motives are commonly cited as a barrier for annuitization. This paper tests how framing partial annuitization as a protection for an intended bequest against the risk of asset exhaustion due to unexpected longevity influences the desire to purchase an annuity among a sample of 2,160 partic- ipants. The results indicate that this framing argument does increase interest in purchasing an annu- ity. Regression results demonstrate that this framing has a larger positive effect for individuals with a greater bequest motive. The relationship between annuitization framing and bequest motive dem- onstrated by this experiment has important practical and theoretical implications.
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