Effects of risk tolerance, financial literacy, and financial status on retirement planning

In this study, we investigate the effects of retirement planning on the economic and psychological factors of consumers using a large sample drawn from the 2012 National Longitudinal Survey of Youth. Specifically, we examine the combined impact of risk tolerance, financial literacy, savings, income,...

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Bibliographic Details
Published inJournal of financial services marketing Vol. 27; no. 3; pp. 167 - 176
Main Authors Park, Heejung, Martin, William
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan UK 01.09.2022
Palgrave Macmillan
Subjects
Attribution theory
Consumer behavior
Consumers
Decision making
Economics
Economics and Finance
Finance
Financial literacy
Financial planning
Financial Services
Marketing
Original Article
Purchase intention
Retirement planning
Retirement plans
Variables
Risk tolerance
Attribution theory
Financial decision-making
Retirement planning
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Summary:In this study, we investigate the effects of retirement planning on the economic and psychological factors of consumers using a large sample drawn from the 2012 National Longitudinal Survey of Youth. Specifically, we examine the combined impact of risk tolerance, financial literacy, savings, income, and debt on consumers’ retirement planning behavior. Risk tolerance, financial literacy, income, and savings are all found to have positive relationships with retirement planning, though debt has no significant relationship with retirement planning. Also, higher levels of risk tolerance weaken the relationship between savings and retirement planning. Implications of these findings for the literature and the financial planning industry are provided as well as directions for future research.
ISSN:1363-0539
1479-1846
DOI:10.1057/s41264-021-00123-y