Narrow Framing and Retirement Savings Decisions

Serah Shin, Hyungsoo Kim, Claudia J. Heath

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


Theoretical studies suggest narrow framing underlies individuals' saving decisions. When narrow framing is applied to retirement savings decisions, narrow framers tend to make decisions about present consumption without considering future consumption, i.e., saving for consumption in retirement. Time preference for the present and narrow framers' preference to maintain the status quo lead to a decision that is less likely to increase savings for retirement. This study provides empirical evidence that narrow framing bias affects retirement savings decisions. Using a two-part model, the probit estimation indicates narrow framers anticipated being less willing to increase retirement savings contributions compared to broad framers, and the OLS regression estimates that narrow framers anticipated contributing less than broad framers. Here, narrow framers anticipated being less willing to increase retirement savings (62.6% vs. 71.9%) and contributing less ($70.90 vs. $88.40) than broad framers, thus providing empirical evidence regarding the effects of behavioral biases on financial decisions.

Original languageEnglish
Pages (from-to)975-997
Number of pages23
JournalJournal of Consumer Affairs
Issue number3
StatePublished - Sep 1 2019

Bibliographical note

Publisher Copyright:
Copyright 2018 by The American Council on Consumer Interests

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance
  • Sociology and Political Science


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