Race, Trust, and Retirement Decisions

34 Pages Posted: 24 Nov 2013

See all articles by Terrance Martin

Terrance Martin

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

Date Written: October 1, 2013

Abstract

Using the 2008 National Longitudinal Survey of Youth, this study investigates whether racial differences in trust can explain decisions to consult a financial planner and the variation in accumulated retirement wealth. Black and Hispanics are more likely to report having low trust compared to non-Black, non-Hispanic respondents. The results show evidence that low trust impacts the two outcome decisions of Blacks more relative to non-Black, non-Hispanic respondents. Low trust minimally affects Hispanics relative to non-Black, non-Hispanic respondents as it related to the decision to consult a financial planner and the accumulation of retirement wealth. Marginal effects of Tobit regression analysis show no evidence of racial difference in the effect of a financial planner.

Keywords: race, trust, financial planner, retirement planning, retirement savings

Suggested Citation

Martin, Terrance, Race, Trust, and Retirement Decisions (October 1, 2013). Available at SSRN: https://ssrn.com/abstract=2358737 or http://dx.doi.org/10.2139/ssrn.2358737

Terrance Martin (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

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