The Role of Health and Age in Financial Preparations for Later Life (original) (raw)
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An Analysis of Financial Preparation for Retirement
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In this study, we analyze financial preparation for retirement. Specifically, probit analysis was conducted using data from the Survey of Consumer Finances to compare and contrast variables affecting retirement preparation between men and women aged thirty to thirty-nine. We specifically analyze two dependent variables: whether or not an individual is eligible for a retirement plan and whether or not an individual is contributing to a retirement plan.The findings indicate that good health and work history have significant positive effects on retirement plan eligibility whereas age and education levels have significant negative effects. Regarding retirement plan contributions, the findings indicate significant positive effects regarding income and womenhood. Therefore, the findings generally support the hypothesis of income as a predictor of retirement plan preparation for women in their thirties. In addition, the findings indicate that women who are divorced, separated, or living with a partner are more likely to contribute to their pension plans through work. Education is significant and positive as a predictor for the decision to contribute to a pension plan for women in their thirties, thus supporting our hypothesis of a significant positive relationship between education and pension plan contributions. Conversely, the findings regarding work history (length of employment and number of weeks worked per year) and the decision to contribute to a pension plan were significant and negative for women in their thirties. This result could be due to a general unconcerned attitude regarding retirement preparation in this age group since actual retirement for most is at least thirty years away. Finally, household size was insignificant as a predictor of both pension plan eligibility and the decision to contribute. Therefore, the findings do not support the hypothesis of household size as a predictor of retirement plan preparation. Thus, it appears that if individuals in large households have less discretionary income to spend on certain items, contributions to a retirement plan does not seem to be influenced by family size.
Social Science Research Network, 2018
Longer retirement periods coupled with the inadequacy of the Social Security system, low personal savings rates, and a decreasing trend in the prevalence of defined benefit retirement plans threaten to put a financial strain on individuals approaching retirement. To that end, we investigate retirement preparation among individuals in their fifties. Probit analysis was conducted using data from the 1995 Survey of Consumer Finances. Regarding individuals in their fifties, the findings indicate that good health and work history have significant positive effects on retirement plan eligibility. In addition, income has a significant positive effect on retirement plan eligibility for both men and women in their fifties. In contrast, age and education levels have significant negative effects regarding pension plan eligibility for both sexes in their fifties. The findings regarding retirement plan contributions indicate significant positive effects regarding income and women. Therefore, the findings generally support the hypothesis of income as a predictor of retirement plan preparation for women in their fifties. In addition, the findings indicate that women who are married or living with a partner are more likely to contribute to their pension plans through work. Education is also significant as a predictor of the decision to contribute to a pension plan for women in their fifties. In addition, the findings regarding work history (length of employment and number of weeks worked per year) and household size were significant and negative for women in their fifties. Finally, health and household status is not significant as a predictor of the decision to contribute to a pension plan. Therefore, the findings do not support the hypotheses of excellent health and homeownership as a predictor contributing to an employer sponsored pension plan.
Independence and self-provision in old age: how realistic are these goals?
Australasian Journal on Ageing, 2004
The aim of the present paper was to examine the relationship between perceived choices in work and retirement in middle age and financial security and confidence about the future in old age. Methods: A qualitative study of 30 middle-aged adults in Adelaide and Whyalla in South Australia, either presently employed, unemployed or retired, were interviewed about their work histories, the factors in their work changes, their perceived options concerning future work and retirement, and their anticipated financial security and sources of income in retirement. Results: In general, participants with a history of continuous stable employment believed they were in a good financial situation and were confident about their future, but many of the participants had a history of precarious employment, no financial security, and expected to rely primarily on government support in their old age. Conclusion: A substantial proportion of older adults may not be able to provide for themselves in later life without public policies which are more interventionist.