Assessing the Effect of Self-Control on Retirement Preparedness of U.S Households

Consumer Interests Annual, Volume 59, 2013

6 Pages Posted: 27 Dec 2013 Last revised: 28 Dec 2013

See all articles by Kyoung Tae Kim

Kyoung Tae Kim

University of Alabama

Jae Min Lee

Minnesota State University, Mankato

Eunice Hong

Korean Women’s Development Institute; Ohio State University - Consumer Sciences Department; Sungshin Women's University

Date Written: July 9, 2013

Abstract

We examine the self-control problems of U.S households and their effect on households’ retirement preparedness based on the Behavioral Life-Cycle Hypothesis. Self-control problems are measured using four variables: health condition, credit attitude, saving decisions, and planning horizon. From the 1995-2007 Survey of Consumer Finances datasets, we found that 54-64% of households are prepared for adequate retirement during 1995-2007. Our multivariate results show that households with health, credit revolving and saving decision self-control problems are less likely to have adequate retirement preparedness than those without such self-control problems. For planning horizon variable, households with the longest saving horizon (longer than 10 years) have higher likelihood of having an adequate retirement than households with next few months of planning horizon.

Keywords: Self-control, Retirement Preparedness, Behavioral Life-Cycle Hypothesis, Survey of Consumer Finances

JEL Classification: D03, D12, D26

Suggested Citation

Kim, Kyoung Tae and Lee, Jae Min and Hong, Eunice, Assessing the Effect of Self-Control on Retirement Preparedness of U.S Households (July 9, 2013). Consumer Interests Annual, Volume 59, 2013. Available at SSRN: https://ssrn.com/abstract=2371964

Kyoung Tae Kim (Contact Author)

University of Alabama ( email )

312 Adams Hall
Tuscaloosa, AL 35487-0001
United States

Jae Min Lee

Minnesota State University, Mankato ( email )

120 Wiecking Center
Mankato, MN MN 43210
United States

Eunice Hong

Korean Women’s Development Institute ( email )

225 Jinheung-ro Eunpyeong-gu
Seoul, 03367
Korea, Republic of (South Korea)
82-2-3156-7139 (Phone)
82-2-3156-7276 (Fax)

Ohio State University - Consumer Sciences Department ( email )

United States

Sungshin Women's University ( email )

249-1 Dong-Dong 3-Ka Sungbuk-Ku
Seoul 136-742
Korea, Republic of (South Korea)

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