Personality Traits and Economic Preparation for Retirement

30 Pages Posted: 6 Jun 2013

See all articles by Michael D. Hurd

Michael D. Hurd

RAND Corporation; State University of New York at Stony Brook - College of Arts and Science - Department of Economics; National Bureau of Economic Research (NBER)

Angela Duckworth

University of Pennsylvania - Department of Psychology

Susann Rohwedder

RAND Corporation

David R. Weir

University of Michigan at Ann Arbor

Date Written: September 1, 2012

Abstract

This paper assesses the effects of personality traits on economic preparation for retirement, wealth accumulation, and consumption, among persons 66 to 69 years of age. Among the five chief personality traits of neuroticism, extroversion, agreeableness, conscientiousness, and openness, we focus most on conscientiousness. We find levels of adequate economic preparation for retirement ranging from 29 percent to 90 percent and that conscientiousness positively affects the proportion of persons adequately prepared for retirement, while neuroticism negatively affects it. Both consumption and wealth increase with conscientiousness but wealth increases faster, indicating that more conscientious persons save more out of retirement resources.

Keywords: personality traits, conscientiousness, retirement preparedness, savings, consumption, earnings

Suggested Citation

Hurd, Michael D. and Duckworth, Angela and Rohwedder, Susann and Weir, David R., Personality Traits and Economic Preparation for Retirement (September 1, 2012). Available at SSRN: https://ssrn.com/abstract=2239766 or http://dx.doi.org/10.2139/ssrn.2239766

Michael D. Hurd (Contact Author)

RAND Corporation ( email )

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State University of New York at Stony Brook - College of Arts and Science - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Angela Duckworth

University of Pennsylvania - Department of Psychology ( email )

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Susann Rohwedder

RAND Corporation ( email )

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David R. Weir

University of Michigan at Ann Arbor ( email )

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