Planning for Retirement

37 Pages Posted: 1 Jan 2013  

Terrance Kieron Martin Jr.

University of Texas - Pan American - College of Business Administration - Department of Economics & Finance; Texas Tech University

Michael S. Finke

The American College

Date Written: December 31, 2012

Abstract

Most Americans have not estimated how much they need to save for retirement. This lack of awareness may contribute to low levels of retirement savings. We investigate the relation between planning and retirement wealth. Those who have estimated how much they need to save for retirement have significantly higher retirement wealth. Respondents who rely on an advisor to help plan for retirement save more than those who do it themselves and are more likely to own tax advantaged accounts. Advising services that did not involve estimation of retirement needs had no measurable value. Results suggest that planning, particularly with the help of a comprehensive advisor, improves retirement outcomes.

Keywords: financial planner, comprehensive financial advice, retirement savings, 2008 NLSY 79

JEL Classification: D14, H55, G11, J26

Suggested Citation

Martin, Terrance Kieron and Finke, Michael S., Planning for Retirement (December 31, 2012). Available at SSRN: https://ssrn.com/abstract=2195138 or http://dx.doi.org/10.2139/ssrn.2195138

Terrance Kieron Martin Jr. (Contact Author)

University of Texas - Pan American - College of Business Administration - Department of Economics & Finance ( email )

1201 W. University Drive
Edinburg, TX 78539-2999
United States
9402245027 (Phone)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Michael S. Finke

The American College ( email )

Bryn Mawr, PA 19010
United States

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