The Role of Propensity to Plan on Retirement Savings and Asset Accumulation

Family & Consumer Sciences Research Journal, 45(1), 34-48

31 Pages Posted: 16 Nov 2016

See all articles by Jae Min Lee

Jae Min Lee

Minnesota State University, Mankato

Kyoung Tae Kim

University of Alabama

Date Written: October 5, 2016

Abstract

This study used the 2013 Survey of Consumer Finances (SCF) to identify the role of the propensity to plan on retirement savings and asset accumulation. Based on the theory of propensity to plan, this study proposed two comprehensive indices for propensity to plan by reducing the number of related variables using principal components analysis. Results from ordinary least squares regressions indicated that both retirement savings and net worth increased as the level of propensity to plan increased. This study provides empirical evidence and implications for the role of the propensity to plan on retirement savings and wealth accumulation.

Keywords: Propensity to plan, Retirement savings, Wealth accumulation, Survey of Consumer Finances

JEL Classification: D12, D14

Suggested Citation

Lee, Jae Min and Kim, Kyoung Tae, The Role of Propensity to Plan on Retirement Savings and Asset Accumulation (October 5, 2016). Family & Consumer Sciences Research Journal, 45(1), 34-48. Available at SSRN: https://ssrn.com/abstract=2848693

Jae Min Lee (Contact Author)

Minnesota State University, Mankato ( email )

120 Wiecking Center
Mankato, MN MN 43210
United States

Kyoung Tae Kim

University of Alabama ( email )

312 Adams Hall
Tuscaloosa, AL 35487-0001
United States

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