Document Type
Article
Publication Date
Summer 2013
Abstract
Increasing uncertainty surrounding social security benefits and public sector pension plans is pushing retirement savings into the spotlight. This study finds that education, financial discipline, and financial sophistication increase the likelihood of participating in a pension or an IRA/Keogh plan. Financial distress decreases the likelihood of setting aside additional funds in an IRA/Keogh plan. Further, the likelihood that an eligible individual will decline an offered pension plan decreases with education and financial discipline and financial sophistication. Controlling for health and marital status, the choice to annuitize retirement assets decreases with age and the desire to take risk.
Copyright Statement
This document was originally published by Academy of Financial Services in Financial Services Review. Copyright restrictions may apply.
Publication Information
Schooley-Pettis, Diane K. and Drecnik Worden, Debra. (2013). "Accumulating and Spending Retirement Assets: A Behavioral Finance Explanation". Financial Services Review, 22(2), 173-186.