Market Performance and the Timing of Retirement

Yao, R., & Park, E. (2012). Market performance and the timing of retirement. Journal of Personal Finance, 11(1), 10-48.

41 Pages Posted: 2 Mar 2016

See all articles by Rui Yao

Rui Yao

University of Missouri at Columbia - Department of Personal Finance Planning

Eric Park

University of Missouri at Columbia - Department of Finance

Date Written: 2012

Abstract

This study is the first to utilize nine interview waves of the Health and Retirement Study and multilevel discrete-time survival analysis to investigate the effect of market returns on individual elective retirement decisions. Individuals who retire at a market peak have an increased risk of shortening the longevity of their retirement income. Unfortunately, market returns were found to have a significant positive effect on the probability of retirement. Researchers, employers, financial educators and financial practitioners should help pre-retirees overcome the stock market’s influence on their decision-making to avoid the negative effect of market sequencing on their retirement wealth.

Keywords: Behavioral finance, Retirement behavior, Market sequencing, Projection bias, Health and Retirement Study

Suggested Citation

Yao, Rui and Park, Eric, Market Performance and the Timing of Retirement (2012). Yao, R., & Park, E. (2012). Market performance and the timing of retirement. Journal of Personal Finance, 11(1), 10-48. , Available at SSRN: https://ssrn.com/abstract=2740054

Rui Yao (Contact Author)

University of Missouri at Columbia - Department of Personal Finance Planning ( email )

239 Stanley Hall
Columbia, MO 65211-7700
United States
573-882-9343 (Phone)
573-884-8389 (Fax)

HOME PAGE: http://pfp.missouri.edu/faculty_yao.html

Eric Park

University of Missouri at Columbia - Department of Finance ( email )

Columbia, MO 65211
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
179
Abstract Views
1,893
Rank
334,308
PlumX Metrics