The Role of Self-Control on Retirement Preparedness of US Households

International Journal of Human Ecology, 17(2), 31-42

27 Pages Posted: 2 Aug 2017

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: December 1, 2016

Abstract

We examine the self-control problems of U.S households and their effects on households’ retirement preparedness based on the Behavioral Life-Cycle Hypothesis. Using the 2010 Survey of Consumer Finances dataset, the level of retirement adequacy was estimated with income replacement ratio (IRR), and only 42% of households were adequately prepared for retirement. Results from logistic regression analysis indicated that households with loan payment and saving self-control problems were less likely to be prepared adequately for retirement compared to those without such problems. Age, education, race/ethnicity, marital status, employment status, retirement plans, expected retirement age and risk tolerance were significantly related to retirement preparedness. This study provides financial educator and researchers with suggestions on how to help household make a better retirement plan.

Keywords: self-control, retirement preparedness, retirement savings, retirement planning, survey of consumer finances

JEL Classification: D12, D14

Suggested Citation

Kim, Kyoung Tae and Lee, Jae Min and Hong, Eunice, The Role of Self-Control on Retirement Preparedness of US Households (December 1, 2016). International Journal of Human Ecology, 17(2), 31-42. Available at SSRN: https://ssrn.com/abstract=2992161

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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