UM15-05 - Social Security Claiming, Life Insurance, and Long-Term Care Insurance: The Impact of Narrow Framing and Loss AversionOlivia S. Mitchell and Daniel Gottlieb
This project will analyze how framing and loss aversion influence retirement and insurance decisions, particularly when people claim Social Security benefits and purchase life and long-term care insurance. Theory suggests that narrow framing and loss aversion play an important role in decision-making under uncertainty. Drawing on a special module we fielded in the Health and Retirement study, we will analyze how these concepts relate to retirement and insurance decisions in practice, and how alternative Social Security and insurance designs affect people’s retirement and insurance decisions.
Narrow Framing and Long-Term Care Insurance