Personality and Planning for Retirement: How the Big Five Personality Traits Link to Decisions on Pension Participation

Posted: 8 Jun 2016 Last revised: 1 Aug 2017

See all articles by Jiayi Balasuriya

Jiayi Balasuriya

University of Hertfordshire - Business School; City University of London - Sir John Cass Business School

Yu Yang

ShanghaiTech University - School of Entrepreneurship and Management

Date Written: September 30, 2015

Abstract

This paper investigates the relationship between the big five personality traits and participation in pension schemes using British household survey data from Understanding Society (the UK Household Longitudinal Study). Our results show Extraversion significantly reduces the likelihood of participating in employer and individual personal pensions. Individuals who are high in Conscientiousness are more likely to invest into personal pensions and tend to pay more into these plans. Agreeableness and Extraversion are negatively correlated with the amount paid into personal pension schemes. This study discusses these findings in detail and offers policy implications.

Keywords: Big five personality; Pension participation and contribution; Psychology and economics; Extraversion; Agreeableness; Conscientiousness

Suggested Citation

Balasuriya, Jiayi and Yang, Yu, Personality and Planning for Retirement: How the Big Five Personality Traits Link to Decisions on Pension Participation (September 30, 2015). Available at SSRN: https://ssrn.com/abstract=2791693

Jiayi Balasuriya (Contact Author)

University of Hertfordshire - Business School ( email )

College Lane
Hatfield, Hertfordshire Al10 9AB
United Kingdom

City University of London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Yu Yang

ShanghaiTech University - School of Entrepreneurship and Management ( email )

100 Haike Rd
Pudong Xinqu, Shanghai
China

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