Perceptions of Retirement Adequacy: Evidence From South Africa

2018 ◽  
Vol 29 (2) ◽  
pp. 343-356 ◽  
Author(s):  
Michelle Reyers
Keyword(s):  
Financial Risk ◽  
Time Perspective ◽  
Future Time Perspective ◽  
Risk Tolerance ◽  
Financial Behavior ◽  
Retirement Income ◽  
Retirement Savings ◽  
Savings Behavior ◽  
South Africans ◽  
Income Adequacy

Concerns regarding the adequacy of retirement savings have contributed to the move to encourage better savings behavior. One area of research focuses on understanding the profile of individuals who believe they are preparing adequately for retirement. The current study uses data from a national survey of South Africans to determine how confident workers are about their future retirement income adequacy, and whether behavioral characteristics play a role in their perception of retirement readiness. This study highlights the role that behavioral factors play in perceptions of retirement income adequacy in an African developing market context. In particular, financial risk tolerance, future time perspective, good financial behavior, and self-assessed financial knowledge are all found to be positively related to respondents’ retirement confidence.

scholarly journals The determinants of intention to buy retirement plans of HCMC residents

2015 ◽  
Vol 18 (4) ◽  
pp. 45-54
Author(s):  
Dung Tien Nguyen ◽  
Anh Ngoc Tram Pham ◽  
Minh Tien Pham
Keyword(s):  
Purchase Intention ◽  
Financial Risk ◽  
Time Perspective ◽  
Negative Impact ◽  
Future Orientation ◽  
Future Time Perspective ◽  
Risk Tolerance ◽  
Perceived Behavioral Control ◽  
Retirement Plans ◽  
Financial Risk Tolerance

The aim of this research is to examine the determinants of intention of HCM city’s residents in buying retirement plans which have recently been launched to provide additional incomes for retirees and to relieve the national budget. The research model was conducted based on the theory of planned behaviors (Ajzen, 1991), future time perspective, and financial risk tolerance. PLS-SEM was applied in data analysis. The result indicates the determinants of purchase intention; among those, the attitude, subjective norm, perceived behavioral control and future orientation have positive impacts, and financial risk tolerance has negative impact on intention.

scholarly journals Perceptions of retirement adequacy in Lesotho: Behavioural and socio-economic influences

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Tokiso Nthebe ◽  
Michelle Reyers
Keyword(s):  
Financial Literacy ◽  
Financial Risk ◽  
Online Survey ◽  
Time Perspective ◽  
Financial Sector ◽  
Future Time Perspective ◽  
Risk Tolerance ◽  
Bivariate Analysis ◽  
Future Research ◽  
Multivariate Techniques

Orientation: Saving for retirement is complicated for employees because of the complexity of the financial decisions involved. Financial decision-making is believed to be associated with a number of behavioural and socio-economic factors, and these factors may in turn be related to whether employees perceive themselves to be adequately saving for retirement.Research purpose: This study assesses which factors predict whether individuals working in both the financial and non-financial sectors in Lesotho perceive themselves to be adequately preparing for retirement. The main focus is on financial literacy (FL), financial risk tolerance (FRT) and future time perspective (FTP). As a secondary focus, the study looks at the potential differences between two sectors of employees that may be attributed to differing levels of FL.Motivation for the study: This study focuses on Lesotho to provide an African context on retirement saving and hopefully lay the foundation for future research in the field of retirement saving.Research approach/design and method: Data were collected from 200 participants using an online survey at three companies in Lesotho and analysed using bivariate and multivariate techniques, with a linear regression model used in terms of the multivariate analysis.Main findings: This study finds that FL, FRT and FTP are all positively related to perceived retirement adequacy (RA) in the bivariate analysis. In the multivariate analysis, for those working outside the financial sector, objective FL, subjective FL and FTP were positively related to perceived RA, whereas for those in the financial sector, higher levels of FTP, higher household income and being older were all associated with higher levels of perceived RA.Practical/managerial implications: The participants in this study are not representative of the broader Lesotho population; therefore, further research would be required before this conclusion is generalised.Contribution/value-add: These findings provide insights to industry role players about the profile of individuals who are confident about retirement savings and how this contrasts with those who are not confident.

Antecedents to responsible financial management behavior among young adults: moderating role of financial risk tolerance

2020 ◽  
Vol 38 (5) ◽  
pp. 1177-1194 ◽  
Author(s):  
Dhananjay Bapat
Keyword(s):  
Young Adults ◽  
Financial Management ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Management Behavior ◽  
Content Type ◽  
Financial Risk Tolerance

PurposeThe study examines the antecedents of responsible financial management behavior among young adults in India and explores the role of financial risk tolerance as a moderating variable.Design/methodology/approachThe sample includes young adults in the age group of 18–35. The analysis uses a two-step approach via standard partial least squares structural modeling (PLS-SEM) and ordinary least square (OLS) regression.FindingsStructural modeling results show that financial attitude fully mediates the relationship between financial knowledge and responsible financial management behavior, and locus of control influences responsible financial management behavior. Financial risk tolerance moderates the relationship. Among demographic factors, age and occupation influence responsible financial management behavior.Research limitations/implicationsThe financial knowledge used in the survey are based on self-reported responses. The future study can include participants from both developed and emerging countries to assess similarities and differences.Practical implicationsDespite the growing focus on improving financial literacy, there are growing concerns regarding responsible financial behavior. Since financial services is related to fiduciary responsibility, managers and policymakers need to ensure that financial knowledge results in improving financial attitude, which further leads to responsible financial behavior.Originality/valueThe present study from an emerging country will add value to the literature.

scholarly journals Female workers' readiness for retirement planning: an evidence from Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Linda Evelina Larisa ◽  
Anastasia Njo ◽  
Serli Wijaya
Keyword(s):  
Financial Literacy ◽  
Time Perspective ◽  
Structural Model ◽  
Retirement Planning ◽  
Future Time Perspective ◽  
Risk Tolerance ◽  
Primary Data ◽  
Content Type ◽  
Female Workers ◽  
The Government

PurposeThe purpose of this study is to examine the effects of demographical factors (age, education and income); psychological factors which are future time perspective (FTP) and financial risk tolerance (FRT); along with financial literacy on retirement planning among female workers in Indonesia.Design/methodology/approachThis study applies a quantitative approach, where primary data was acquired through online surveys to 529 workers in various locations in Indonesia. After data cleaning, the final sample size was 304. The PLS-SEM technique was utilised to assess the structural model in the study.FindingsThe results of this study show that income affects an individual's perspective towards the future. Financial literacy is confirmed to have a direct effect on retirement planning activity. Furthermore, financial literacy appears to be a significant mediator between demographical factors and FTP in affecting retirement planning. An individual's acceptance towards risk is also affected by financial literacy.Practical implicationsThe general public, especially female workers group who have no retirement funds, need to be educated on financial literacy. The government might need to encourage other parties and work together to financially educate the public, specifically regarding investments for retirement planning.Originality/valueMost previous studies on retirement planning focused on demographical factors in general, and not specifically on a certain group. Filling the gap of existing studies, this study specifically discusses retirement planning done by female workers in Indonesia. Women's role as a workforce, with their psychological conditions and financial literacy, makes for an interesting topic to be studied further in terms of retirement planning.

scholarly journals How Much Should the Poor Save for Retirement? Data and Simulations on Retirement Income Adequacy among Low-earning Households

2020 ◽  
pp. 167-183
Author(s):  
Andrew G. Biggs
Keyword(s):  
Social Security ◽  
Low Income ◽  
Retirement Income ◽  
Retirement Savings ◽  
Lower Income ◽  
Income Adequacy ◽  
Retirement Saving ◽  
Investment Returns ◽  
Explicit Analysis ◽  
Social Security Benefits

A number of US states have introduced automatic enrollment retirement accounts as a means to raise retirement savings for lower-income households. The presumption is that such households, whose rates of formal retirement saving are low, would benefit from higher saving and higher incomes in retirement. Nevertheless, there has been little explicit analysis of how much lower-income households should save in excess of their social security contributions. There is also little evidence that many current lower-income retirees are unable to maintain their pre-retirement standards of living. To study this issue, this chapter builds a simple model of retirement saving, allowing for the inclusion of social security benefits, different standards of retirement income adequacy, and different assumptions regarding pre- and post-retirement investment returns. Interestingly, low-income retirees express less satisfaction with the adequacy of their retirement incomes than other retirees, but their self-assessed retirement income adequacy has actually increased in recent years. The chapter also shows that, for very low earners, little savings are necessary on top of social security payments.

scholarly journals Why do older adults avoid seeking financial advice? Adviser anxiety in the Netherlands

2016 ◽  
Vol 37 (6) ◽  
pp. 1268-1290 ◽  
Author(s):  
HENDRIK P. VAN DALEN ◽  
KÈNE HENKENS ◽  
DOUGLAS A. HERSHEY
Keyword(s):  
Older Adults ◽  
Time Perspective ◽  
Future Time Perspective ◽  
Risk Tolerance ◽  
Hierarchical Regression ◽  
Future Time ◽  
Low Incomes ◽  
The Common ◽  
Low Levels ◽  
Item Scale

ABSTRACTWhy is it that many people fail to seek retirement planning advice when doing so is clearly indicated? Distrust of financial intermediaries is often presented as the common answer. But this paper shows that trust issues are only part of the answer; an appreciable proportion of individuals experience anxiety at the prospect of visiting a financial adviser. In the present investigation, financial adviser anxiety is studied among 950 Dutch adults over the age of 50. Anxiety levels were measured using a six-item scale that was administered as part of a larger nationwide investigation on retirement attitudes and behaviour. Findings revealed that nearly one-third of respondents reported having moderate to severe levels of anxiety at the prospect of visiting a financial professional. Furthermore, a hierarchical regression analysis revealed that strong predictors of anxiety included one's educational level, income, age, level of future time perspective, risk tolerance, financial knowledge and scepticism regarding whether advice from a financial professional can be trusted. A cluster analysis using demographic and psychological covariates identified three separate groups of older adults that were found to differ in terms of their mean level of anxiety. Those who had low levels of education and low incomes were found to disproportionately display high levels of financial adviser anxiety.

scholarly journals FINANCIAL HELP SEEKING BEHAVIOR PADA MAHASISWA DI SURABAYA

2020 ◽  
Vol 10 (1) ◽  
pp. 29
Author(s):  
Stephen Geraldo ◽  
Evelyn Evelyn
Keyword(s):  
Graduate Students ◽  
University Students ◽  
Help Seeking ◽  
Financial Risk ◽  
Financial Education ◽  
Risk Tolerance ◽  
Financial Behavior ◽  
Help Seeking Behavior ◽  
Seeking Behavior ◽  
Financial Risk Tolerance

The purpose of this study is to identify the factors that influence financial help-seeking behavior among university students in Surabaya. The study was conducted by distributing questionnaires to undergraduate and graduate students in Surabaya. Data analysis was performed with logistic regression. Help seekers tend to have less financial education, negative financial behavior, higher financial risk tolerance, higher levels of financial stress, and low financial self-efficacy. The results of this study are expected to help the concerned parties to formulate various policies that can improve one's financial welfare, in this case, university students.

Earmarking Risk: Relational Investing and Portfolio Choice

Social Forces ◽  
2020 ◽  
Author(s):  
Adam Hayes ◽  
Rourke O’Brien
Keyword(s):  
Portfolio Choice ◽  
Financial Risk ◽  
Life Stage ◽  
Wealth Inequality ◽  
Risk Tolerance ◽  
Economic Behavior ◽  
Retirement Savings ◽  
Significant Life ◽  
Original Survey ◽  
Allocation Decisions

Abstract Ordinary individuals are increasingly charged with making investment decisions not only for themselves but also for close others. A child’s college savings account and a spouse’s retirement savings are instances where investing has become unmistakably relational. In this paper, we posit a theory of relational investing that extends Zelizer’s relational perspective from the domain of transactions to that of financial risk-taking. Through two original survey experiments, we demonstrate that (1) individuals are less risky with dollars earmarked for others, (2) risk tolerance varies as a function of for whom the dollars are earmarked, and (3) labeling accounts for culturally significant life-stage events (such as retirement or college) also shapes risk tolerance. Because allocation decisions determine financial returns achieved by portfolios invested in the market, our framework and findings have important implications for understanding potential drivers of wealth inequality as well as for the study of culture and economic behavior.

Different Future Time Perspectives Interplay in Predicting Life Satisfaction

GeroPsych ◽  
2018 ◽  
Vol 31 (3) ◽  
pp. 103-113 ◽  
Author(s):  
Minjie Lu ◽  
Angel Y. Li ◽  
Helene H. Fung ◽  
Klaus Rothermund ◽  
Frieder R. Lang
Keyword(s):  
Life Satisfaction ◽  
Time Perspective ◽  
Well Being ◽  
Future Time Perspective ◽  
Hong Kong Chinese ◽  
Future Time ◽  
Time Perspectives ◽  
Time Extension ◽  
Future Self ◽  
The Relationship

Abstract. This study addresses prior mixed findings on the relationship between future time perspective (FTP) and well-being as well as examines the associations between three aspects of FTP and life satisfaction in the health and friendship domains. 159 Germans, 97 US Americans, and 240 Hong Kong Chinese, aged 19–86 years, completed a survey on future self-views (valence) and life satisfaction. They also reported the extent to which they perceived future time as expanded vs. limited (time extension) and meaningful (openness). Findings revealed that individuals with more positive future self-views had higher satisfaction. However, those who perceived their future as more meaningful or perceived more time in their future reported higher satisfaction even when future self-views were less positive.

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