framing

'How a choice is presented affects the decision consumers will make'

One of the obvious examples in the retirement market is the positioning of annuities.

FCA research revealed that when presented as a form of insurance, 66% of consumers preferred an annuity to a savings account. When presented as an investment product only 17% chose the annuity. ('Does the framing of retirement income options matter?', 2014, FCA).

action

There are a number of actions you can take:

  • Present annuities as an insurance product, "however long you live you'll be guaranteed an income every year".
  • Watch the "A" word. It has been discredited (we call it a "guaranteed income for life").
  • Emphasise the death benefit options (if leaving a legacy is an issue). Remember clients can now buy a "money back guarantee" (100% value protection).
framing
action
framing
action