Planning for Retirement? The Importance of Time Preferences

63 Pages Posted: 13 Jun 2017

See all articles by Robert L. Clark

Robert L. Clark

North Carolina State University - Poole College of Management

Robert G. Hammond

North Carolina State University

Christelle Khalaf

Ohio University-Voinovich School of Leadership and Public Affairs; North Carolina State University

Melinda Sandler Morrill

North Carolina State University - Department of Economics

Date Written: June 2017

Abstract

Ensuring retirement income security is a priority for individuals, employers, and policymakers. Using merged administrative and survey data for public sector workers in North Carolina, we explore how workers’ characteristics and preferences are associated with planning and saving for retirement. We then assess the “quality” of a retirement plan and whether retirement behavior is consistent with these plans. The findings indicate that the way that individuals discount future consumption is associated with the extent of their retirement planning and preparedness. We find that individuals who engage in retirement planning are better prepared to meet their retirement goals upon leaving their career jobs.

Suggested Citation

Clark, Robert L. and Hammond, Robert G. and Khalaf, Christelle and Morrill, Melinda Sandler, Planning for Retirement? The Importance of Time Preferences (June 2017). NBER Working Paper No. w23501. Available at SSRN: https://ssrn.com/abstract=2984677

Robert L. Clark (Contact Author)

North Carolina State University - Poole College of Management ( email )

Hillsborough Street
Raleigh, NC 27695-8614
United States
919-515-5560 (Phone)
919-515-5564 (Fax)

Robert G. Hammond

North Carolina State University ( email )

Raleigh, NC 27695-8110
United States

HOME PAGE: http://www4.ncsu.edu/~rghammon/

Christelle Khalaf

Ohio University-Voinovich School of Leadership and Public Affairs ( email )

Athens, OH 45701-2979
United States

North Carolina State University

Hillsborough Street
Raleigh, NC 27695
United States

Melinda Sandler Morrill

North Carolina State University - Department of Economics ( email )

Raleigh, NC 27695-8110
United States
9195150331 (Phone)

HOME PAGE: http://www4.ncsu.edu/~msmorril

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