Determinants of planned retirement age

Financial Services Review 01/2000; 9(1):1-15. DOI: 10.1016/S1057-0810(00)00052-4
Source: RePEc

ABSTRACT The tradeoff between risk and return in equity markets is well established. This paper examines the existence of the same tradeoff in the single-family housing market. For home buyers, who constitute about two-thirds of U.S. households, the choice about how much housing and which house to buy is a joint consumption/investment decision. Does this consumption/investment link negate the risk/return tradeoff within the single-family hosuing market? Theory suggests the link still holds. This paper supplies empirical evidence in support of that theoretical result.

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    ABSTRACT: This study develops a framework that can be used to examine the retirement savings decision. Using Retirement Confidence Survey data (N = 751), this analysis determined that respondents with higher education levels, higher income, a smaller household size, and favorable financial attitudes tend to currently have a retirement savings program in place. Those who are exposed to workplace financial education are more likely to have a retirement savings program and having a retirement savings program related positively to retirement confidence.
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    ABSTRACT: We examine a sample of retirees who either remain fully retired or return to work in some capacity. Surprisingly, we find that those who rejoin the labor force are no less financially prepared for retirement than are their counterparts who remain retired. Instead, the factors that significantly influence the decision to return to work are the availability of health insurance, whether the initial decision to retire is freely chosen, and the degree of satisfaction with retirement. However, the factors that significantly affect the decision to return to work differ between those who wanted to retire and those who were forced into retirement.
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    ABSTRACT: The relationship between meeting the Capital Accumulation Ratio Guideline and retirement adequacy was investigated. About 63% of the households had a consistent relationship between meeting the 25% ratio guideline and being adequately prepared for retirement, with 46% of households both meeting the 25% ratio guideline and being prepared for retirement and 17% not meeting the guideline and not being adequately prepared for retirement. However, 37% of households did not have a consistent relationship. Meeting the 25% ratio guideline does not appear to be an accurate indicator of retirement adequacy. The 25% guideline was a better indicator than the 50% guideline.

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May 20, 2014