Dissertation/Thesis Abstract

An Analysis of Future Retirees' Concerns Regarding Pension Plans Reforms and Demographic Factors that Influence Retirement Investment Decisions
by Salvador, Ricardo, Ph.D., Northcentral University, 2012, 149; 3533664
Abstract (Summary)

In coming years, corporate pension plans, Social Security, and personal savings may be unable to sustain many individuals financially during retirement. Further, variations in levels of financial literacy, combined with a reduction in employer-sponsored retirement plans and pension plans, mean that individuals may have varying levels of confidence in their ability to retire securely. Understanding trends in perceptions of financial security in the current environment, and the role of demographic and background variables or financial literacy in these perceptions, is important so that the government, institutions, and individuals will better understand the steps needed to achieve a financial security in retirement. The purpose of this nonexperimental quantitative research study was to examine future retirees' perceptions about having a financially secure retirement in a changing pension plan environment, and to assess the role that demographic and background variables and financial literacy play in determining these perceptions. This study included 254 participants employed within the United States and at least 30 years of age. The variables most associated with lower self-efficacy were lack of a college education (z = -3.16, p = .002), having income lower than $50,000 per year (z = -5.02, p < .001), and lack of enrollment in an employer-sponsored retirement plan ( z = -2.86, p = .004). Regarding financial literacy, results showed that being Hispanic (z = -2.66, p = .008), being female (z = -2.13, p = .034), and having an annual household income less than $50,000 per year (z = -3.24, p = .001) were associated with lower Financial Literacy scores. Implications were that confidence in one's ability to have a secure retirement does not appear to be associated with the same variables as financial literacy. Recommendations for practice include several changes to public policy related to retirement programs. These recommendations include reinforcing Social Security, requiring universal participation in some type of retirement plan, and increasing public financial literacy beyond basic levels. Recommendations for future research include performing longitudinal studies and an examination of potential differences based on participant income or wealth.

Indexing (document details)
Advisor: Steiner, Tom
School: Northcentral University
School Location: United States -- Arizona
Source: DAI-A 74/04(E), Dissertation Abstracts International
Subjects: Home economics education, Finance, Business education
Keywords: Investment decisions, Literacy, Pensions, Retirement, Self-efficacy
Publication Number: 3533664
ISBN: 9781267781802
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