The term frame comes from bevavioral finance and refers to the way in which a decision or problem is presented. For example, the annuity purchase decision can be framed in the context of investing (i.e. gains, losses and terminal wealth) or in the context of consumption and guaranteed income. The manner in which a potential decision is framed can have a huge impact on outcomes. With annuities, for example, framing can impact whether to annuitize, when to buy, how much wealth to annuitize, and what type of annuity to use.
