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Skint: Retirement? Financial Hardship and Retirement Planning Behaviors

Author

Listed:
  • Lu Fan

    (University of Missouri)

  • Richard Stebbins

    (University of Alabama)

  • Kyoung Tae Kim

    (University of Alabama)

Abstract

This study used data from the 2018 National Financial Capability Study to investigate the association between financial hardship and retirement planning behaviors. Results from logistic regressions showed that respondents with high difficulty making ends meet were more likely to calculate retirement needs and more likely to own a non-employer sponsored retirement plan. The perceived over-indebtedness was positively associated with owning an employer-sponsored account while negatively associated with owning a non-employer-sponsored account. Financial fragility was associated with a lower likelihood of calculating retirement needs and having a retirement account. The results of additional generational analyses revealed that the difficulty making ends meet and the perceived over-indebtedness showed different patterns with retirement planning behavior across three generations. In contrast, financial fragility showed consistent and negative associations with the retirement planning behaviors across generations.

Suggested Citation

  • Lu Fan & Richard Stebbins & Kyoung Tae Kim, 2022. "Skint: Retirement? Financial Hardship and Retirement Planning Behaviors," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 354-367, June.
    • Handle: RePEc:kap:jfamec:v:43:y:2022:i:2:d:10.1007_s10834-021-09779-z
    DOI: 10.1007/s10834-021-09779-z
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    References listed on IDEAS

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    1. Ioannis Laliotis & Mujaheed Shaikh & Charitini Stavropoulou & Dimitrios Kourouklis, 2023. "Retirement and Household Expenditure in Turbulent Times," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 968-989, December.

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    More about this item

    Keywords

    Retirement planning; Financial hardship; Retirement saving; Financial fragility; Financial knowledge;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G5 - Financial Economics - - Household Finance

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