Procrastination and Financial Planning for Retirement: A Moderated Mediation Analysis

Abstract

The longitudinal study described in this article analyzes the mediating role of financial retirement goals in the relationship between financial retirement knowledge and retirement saving and investment behavior, and the moderating role of procrastination in people approaching retirement age. The participants in the study (N = 224) were workers between the ages of 45 and 63 years employed by small and medium-sized firms in Spain. A 3-wave design was utilized to confirm the causal effect of antecedents on consequences, the waves being set approximately 4 months apart. The results show that the relationship between financial retirement knowledge and retirement saving and investment behavior is in fact mediated by financial retirement goals. We also found that procrastination moderates both the relationships between financial retirement knowledge and goals, and the relationships between financial retirement goals and saving behavior. The theoretical and practical implications of the study for design are discussed at the end of the article.

Full text

1
PROCRASTINATION AND RETIREMENT
PROCRASTINATION AND FINANCIAL PLANNING FOR RETIREMENT: A
MODERATED MEDIATION ANALYSIS
Gabriela Topa, Ph. D. in Psychology (1) and Teresa Herrador-Alcaide, Ph. D. in
Business Economics and Accounting (2)
(1) UNED, Department of Social and Organizational Psychology, Madrid, Spain.
(2) UNED, Department of Business Economics and Accounting, Madrid, Spain.
Corresponding Author: Gabriela Topa. UNED. Faculty of Psychology. C/ Juan del
Rosal, 10 28040 Madrid. Spain gtopa@psi.uned.es
Conflict of Interest: The authors declare that they have no conflict of interest.
Funding information: This study has been conducted under the support received by
Professor Gabriela Topa from the Foundation Banco Santander, R + D 2014.

2
PROCRASTINATION AND RETIREMENT
Procrastination and Financial Planning for Retirement: A Moderated
Mediation Analysis
Abstract
The longitudinal study described in this paper analyses the mediating role of
financial retirement goals in the relationship between financial retirement knowledge
and retirement saving and investment behavior, and the moderating role of
procrastination in people approaching retirement age. The participants in the study (N =
224) were workers between the ages of 45 and 63 employed by small and medium-sized
firms in Spain. A three-wave design was utilized to confirm the causal effect of
antecedents on consequences, the waves being set approximately four months apart. The
results show that the relationship between financial retirement knowledge and
retirement saving and investment behavior is in fact mediated by financial retirement
goals. We also found that procrastination moderates both the financial retirement
knowledge-goals relationship and financial retirement goals-saving and investment
behavior. The theoretical and practical implications of the study for design are discussed
at the end of the paper.
Keywords: retirement; financial planning; financial knowledge; saving behavior;
procrastination.

3
PROCRASTINATION AND RETIREMENT
Procrastination and Financial Planning for Retirement: A Moderated
Mediation Analysis
Retirement is a time of life that has grown ever longer in the developed world, and
the number of pensioners increased accordingly. At the same time, however, various
macroeconomic factors have cast a pall of uncertainty over the medium- to long-term
soundness of public pensions systems (Clark & Newhouse, 2016). Furthermore, the
responsibility of governments for pension provision has progressively been shifted onto
the individual (Catalán, Guajardo, & Hoffmaister, 2010; De la Fuente & Doménech,
2013; Lytle, Clancy, Foley, & Cotter, 2015). As a consequence, it has become ever
more important to plan financially for retirement in order to guarantee a sufficient level
of income to meet personal needs.
Financial planning for retirement was initially treated as a matter for economists,
but the field has since expanded to include psychosocial variables in an effort to
enhance the explanatory scope of theoretical models. Among other scholars, Hershey,
Jacobs-Lawson and Austin (2013) recently proposed an approach which addresses
financial planning from the standpoint of the individual’s capacity, willingness and
opportunity to plan ahead and save. This model is supported by a growing body of
empirical evidence (Leandro-França, Giardini, Hershey, & Martins, 2016; Hershey &
Mowen, 2000; Jacobs-Lawson & Hershey, 2005), although further research is needed in
view of the complex relationships between the different variables in play.
One the one hand, it has been shown more than once that the relationships between
financial knowledge and saving behavior are mediated by other variables, goals being
among the most widely studied (Boisclair, Lusardi, & Michaud, 2015). On the other,
personal character traits also influence financial planning for retirement, although little
empirical research exists in this area as yet (Drever, et al., 2015). Procrastination is one

4
PROCRASTINATION AND RETIREMENT
of the character traits that may moderate relationships between planning and saving
predictors and outcomes (Brooks, 2013). Procrastination consists of deliberately putting
off or delaying an action which the subject nevertheless intends to take, especially
where delay is likely to have adverse effects (Steel, 2007). This study therefore analyses
the mediating role of financial retirement goals in the relationship between financial
retirement knowledge and saving and investment behavior, and the moderating role of
procrastination in people approaching retirement age.
Financial Planning for retirement
Financial planning for retirement is a complex process, involving a series of
decisions and actions intended to ensure the accumulation of financial resources for use
after the individual leaves active employment in the final stage of life. A comprehensive
model based on three main sets of antecedents was recently proposed by Hershey,
Jacobs-Lawson and Austin (2013), in which financial planning for retirement depends
on the individual’s own capacity, willingness and opportunity to plan and to save.
Capacity includes not only the knowledge and cognitive skills needed to plan ahead
but also, on the downside, the kind of perceptive bias and misconceptions which may
encourage errors of judgment. Meanwhile, willingness consists of the psychological
factors concerned in an individual’s motivation to plan and save. It is made up of a
shifting set of goals and emotional responses surrounding a more stable core of attitudes
and personality traits. Finally, each individual encounters opportunities and restrictions
which favor or hinder the crystallization of their decisions in actual behavior. These
external conditioning factors include social support and the general economic situation,
among others.
The Hershey model was developed specifically to explain financial planning for
retirement. Initial support for this approach was provided by various partial studies

5
PROCRASTINATION AND RETIREMENT
(Hershey, Jacobs-Lawson, McArdle, & Hamagami, 2007). In the present study, we
operationalize the model proposed by Hershey et al. (2013) using three specific
variables which influence retirement saving and investment behavior (i) at the capacity
level (financial retirement knowledge) and (ii) at the willingness level (financial
retirement goals and procrastination). In the following sections, we develop theory-
driven hypotheses for the relationships between these variables, which we then test
using a longitudinal sample.
Financial Retirement Knowledge
Of all the factors which determine financial planning for retirement, the most
widely studied has probably been the quality of personal knowledge (Atkinson &
Messy, 2011). Numerous studies suggest that the proclivity for retirement planning is
related with the extent and accuracy of specific pensions and financial knowledge
(Lusardi & Mitchell, 2011), and the same is true of the likelihood of saving (Grable &
Lytton, 1999), the effectiveness of investment strategies (Lin and Lee 2004), and saving
behaviors in general (Robb & Woodyard, 2011). However, a number of studies have
shown that the connection between financial knowledge and responsible financial
behavior is weak, at least in samples made up of students and young adults (Jones,
2005). Based on the available literature, it would seem reasonable to expect a
relationship between financial retirement knowledge and retirement saving and
investment behavior. Hypothesis 1: Financial Retirement Knowledge (T1) positively
influences Retirement Saving and Investment Behavior (T3).
Financial Retirement Goals
Existing studies have shown that financial knowledge significantly influences
saving, but it is not the only variable involved; other motivational factors also affect the
relationship (Han, Boyle, James, Yu, & Bennett, 2015; Karraker, 2014). The

6
PROCRASTINATION AND RETIREMENT
willingness dimension of the Hershey model proposes that the specificity and scope of
goals exert a strong ascendancy over the orientation of financial behavior. Retirement-
related financial goals may be expressed on different levels in terms of their precision
and timing. Some may be immediate (e.g. to save $100 each month), others medium-
term (e.g. to make an annual contribution to a private pension fund), and yet others
long-term in nature (e.g. to put aside enough money for old age).
The mediation-linking model (Locke, 2001) proposes that goals are the immediate
motivational determinants of behaviors and as such they mediate the effects of all other
antecedents. Goals help people to organize their perceptions, allowing them to form
specific expectations about the future and to orient their conduct in view of the
circumstances. Though empirical studies are not numerous, research findings exist to
support the mediating role of goals in the relationship between antecedents and financial
behavior (Stawsky, Hershey, & Jacobs-Lawson, 2007), as well as other yield-oriented
activities (Diseth & Kobbeltvedt, 2010). In light of this literature, we posit that goals
will play a mediating role between financial retirement knowledge and saving and
investment behaviors. Hypothesis 2: Financial Retirement Goals (T2) mediates the
relationship between Financial Retirement Knowledge (T1) and Retirement Saving and
Investment Behavior (T3).
Procrastination
Though the theoretical model proposed by Hershey et al. includes personality as a
factor in financial planning for retirement via the willingness dimension, the authors
themselves recognize that little research as yet exists on this matter. A handful of
studies have addressed different aspects of personality, but these focus basically on the
locus of control (Noone, Stephen, & Alpass, 2010), self-discipline and thoroughness
(Tang, Baker & Peter, 2015), financial orientation (Loix, Pepermans, Mentens, Goedee,

7
PROCRASTINATION AND RETIREMENT
& Jegers, 2005), future time perspective and risk tolerance (Hershey & Mowen, 2000;
Jacobs-Lawson & Hershey, 2005).
However, many retirement-related goals are linked to a specific time horizon. In the
first place, this is because retirement is unavoidably bound up with age, giving rise to a
series of age-graded normative goals. To put this in another way, retirement goals
appear to a great extent imposed by the mere passage of the years (Zirkel & Cantor,
1990). In the second place, many retirement-related goals are what may be defined as
“deadline goals”, which is to say they must be achieved within a specific time frame.
This in turn obliges the individual to decide how to spread limited resources across a
series of goals with differing degrees of priority (Hastings & Mitchell, 2010).
Due to these relationships between retirement goals and time, some researchers
have explored the role of time perspective on planning (Hershey & Mowen, 2000).
Despite that Zimbardo and Boyd (1999) described five different perspectives (past
positive, past negative, present fatalistic, present hedonistic, and future oriented),
several retirement studies have largely focused on future time perspective (Jacobs-
Lawson & Hershey, 2005). But recent research showed the importance of a wider
consideration of time perspective related to retirement goals (Earl, Bednall, & Muratore,
2016). They found that retirement planning was positively predicted by future
orientation, present hedonistic and past negative perspectives. Accordingly, not only the
orientation to the future, but also the personal tendency to seek instant gratification,
should influence planning behaviors.
Based on the evidence, it would seem reasonable to posit that procrastination is a
key personality trait in relation both to saving and investment behaviors in general (O’
Donoghue & Rabin, 2001) and to retirement saving in particular, given the time
constraints imposed by retirement goals. Ferrari, Johnson and Mc Cown (1995) define

8
PROCRASTINATION AND RETIREMENT
procrastination in general terms as the habit of putting off tasks which are in some way
subjectively unpalatable or disagreeable, thereby hindering the efficient and successful
pursuit of the individual’s own interests. Yaakub (2000) explains that procrastinators
know what they should to do, and to an extent they also know how and may even try,
but in the end they fail to take the necessary action. As a result, procrastinators often
appear to sabotage their own efforts, and they are masters of the art of finding excuses
not to address essential tasks (Ferrari & Díaz-Morales, 2007).
Empirical research remains scant in the field of finance, but findings suggest that
procrastinators are more likely to fail to plan for retirement than people who are more
proactive (Ferrari, Barnes, & Steel, 2009). Based on the existing literature, this study
posits that the relationship between financial retirement knowledge and saving behavior
mediated by financial retirement goals will be moderated by procrastination. Hypothesis
3: Financial Retirement Knowledge (T1) and Retirement Saving and Investment
Behavior (T3), mediated by Financial Retirement Goals (T2), will be moderated by
Procrastination (T1).
Specifically, we expect the influence of Financial Retirement Knowledge (T1) on
Financial Retirement Goals (T2) to be weak in the presence of high levels of
Procrastination. In turn, the influence of Financial Retirement Goals (T2) on Retirement
Saving and Investment Behavior (T2) will be weak when Procrastination is high. In
contrast, it is expected that the association will be strong in both cases where the level
of Procrastination is low. The study hypotheses are represented in Figure. (FIGURE 1).
Method
Participants and procedure
The participants in the study (N = 224) were workers between the ages of 45 and 63
employed by small and medium-sized firms in Spain. A three-wave design was utilized

9
PROCRASTINATION AND RETIREMENT
to confirm the causal effect of antecedents on consequences, the waves being set
approximately four months apart. The methodological rationale for the time lag between
surveys was to separate the variables by periods longer than three months in order to
mitigate the risk of common method variance. Participants were recruited based on their
age (over 45 years). The T1 procedure for the study was performed in October-
November 2014; T2 in March-April 2015; and T3 in July-August 2015. Out of the 450
employees invited to participate at T1, 324 returned complete questionnaires (72%
response rate), and 288 participated in T2 (89% response rate). Finally, 275 matched
surveys were completed at T3, but only 224 were retained after elimination of
questionnaires with more than 25% of missing responses. These 224 respondents
formed the longitudinal sample for the study.
At T1, the potential participants received a cover letter with information about
the aims of the study, as well as assurances that participation was voluntary and that
their responses would be remain anonymous and confidential, being used only for
research purposes. The envelope included the written questionnaire to be completed and
returned to the research group by mail. The questionnaires completed by the participants
were handed in to the research team in a pick-up envelope. Those participants who
returned usable surveys were contacted again at T2 and T3 following the same
procedure.
The participants’ mean age at T3 was 51.8 years (SD = 3.9). Men made up
39.7% of the sample. Meanwhile, average job seniority was 15.3 years (SD = 10.2), and
respondents had an average of 1.04 (SD = 1.2) economic dependents in their
households. In terms of educational level, 42% of the sample had received a university
or similar level of education, 44.1% held diplomas or were high school graduates, and
the rest had received only a basic education. Professionally, 59.8% of participants were

10
PROCRASTINATION AND RETIREMENT
(white or blue collar) workers, 25.4% were middle managers, and 8.9% were senior
managers. Full-time workers accounted for88.8% of the participants, and the rest were
employed part-time. Finally, 29.5% of the sample were employed in healthcare, 7.1% in
education, 18.4% in food and general retailing, 2.7% in industry, 23.2% in energy
services, 2.5% in banking and 5.8% in telecommunications.
Measures
We used standardized questionnaires to assess the key study variables. For all
scales, a score of 5 represents a higher perception or experience of the construct. Both
Financial Knowledge applicable to retirement planning and General Procrastination
were assessed at T1, Financial Retirement Goals at T2, and Retirement Saving and
Investment Behaviors at T3.
Financial Retirement Knowledge (T1)
Specific financial knowledge applicable to retirement planning was assessed using
the Subjective Financial Knowledge Scale (Goldsmith & Goldsmith, 2006), which was
refocused to center on retirement. The six items were answered via a Likert - type
response scale ranging from 1 (Strongly disagree) to 5 (Strongly agree). Examples of
items are: “I know a good deal about investing for retirement”; “I know less about
investing for retirement than most other people”. The authors tested the instrument on
two undergraduate classes receiving formal instruction in finance at Southeastern
University in the USA (one group studying Financial Analysis and the other
Marketing). Reliability in the original study was 0.85, and the second test scored 0.91.
Cronbach alpha was 0.79 in the present study.
Procrastination (T1)
General Procrastination was measured using the 13-point scale developed by Busko
(1998). The scale includes eleven statements regarding the personal tendency to engage

11
PROCRASTINATION AND RETIREMENT
in procrastination and two reversed items. The original instrument was applied to 112
students with an average age of 22 years, resulting in reliability of 0.82. The Spanish
translation and adaptation of the scale prepared by Alvarez (2010), offering reliability of
0.87, reached a Cronbach alpha of 0.80 in the present study. The full survey scale was
included in the appendix.
Financial Retirement Goals (T2)
The General Retirement Goal Clarity Scale (Stawsky, Hershey, & Jacobs-Lawson,
2007) includes five statements focusing on goals and events transpiring in the preceding
12 months. Examples items are: “I set specific goals for how much will need to be
saved for retirement,” and “I thought a great deal about quality of life in retirement”.
This measure has shown high internal consistency and reliability in the past (α=0.90;
Stawski, et al. 2007). The Cronbach alpha in the present study was 0.81. A seven-point
response scale was used (1 = strongly disagree, 7 = strongly agree).
Retirement Saving and Investment Behavior (T3)
The Financial Management Behavior Scale (Lawrence, Thomasson, Wazniak, &
Prawitz, 1993) was used to measure this variable. Specifically, the first subscale,
Savings, consists of nine items, from which items referring to short term savings were
excluded to leave five items applicable to retirement. Example items are: “Save money
for a long term goals”; “Plan ahead for large purchases”, “Keep an emergency fund
equal to at least 3 months of take-home income”. A Likert - type response scale was
ranging from 1 (Never) to 5 (Usually). The original reliability score reported for 133
married respondents was Cronbach alpha =.85 for this factor. Reliability was =0.88 in
the present study.
Analytic Strategy

12
PROCRASTINATION AND RETIREMENT
In order to test the Study hypotheses, we performed a linear regression analysis
(Hypothesis 1) and Moderated Mediation analysis with the PROCESS macros for SPSS
22 (Hayes, 2013) to test Hypotheses 2 to 4. With Bootstrap procedures of 5.000 samples
at a 95% confidence level, the confidence intervals (CI) that did not contain 0 indicated
that the indirect effect was significant.
Results
Descriptive statistics and Pearson correlations between the study variables are
provided in Table1. Financial Retirement Knowledge was positively and significantly
associated with both Goals (r= .28) and Retirement Saving Behavior (r= .36), while
Goals and Behavior showed the strongest correlation (r= .46). Procrastination showed
negative and non significant relationships both with Goals (r= -.10) and Retirement
Saving Behavior (r= -.09). (Insert TABLE 1).
The linear regression analysis to test Hypothesis 1 shows the direct effect (b = .31, p
< .000) of FR Knowledge on Savings (R2 = .13, F (1, 222) = 33.29, p < .001). Table 2
shows the results obtained on testing Hypothesis 2 about the mediation of FR Goals in
the relationship between FR Knowledge and Saving Behavior, revealing a significant
and positive association between FR Knowledge and FR Goals (b = .42, p < .000).
Furthermore, a statistically significant direct effect of FR Knowledge on Saving
Behavior (b = .29, p < .001) was found, as well as a statistical effect of FR Goals on
Saving Behavior (b = .45, p < .001). Hence, there is a significant indirect effect of FR
Knowledge on Savings through FR Goals (b = .13, p < .001). Finally, we tested the
significance of this mediation effect through the bootstrapping procedure, which
showed that the confidence interval for the indirect effect does not contain zero (.05,
.21), supporting the significance of the mediation effect. These results provide
reasonable confirmation of Hypothesis 2. (TABLE 2).

13
PROCRASTINATION AND RETIREMENT
Finally, we tested both Hypotheses 3 and 4 following the procedures recommended
by Hayes (2013), as shown in Table 3. (TABLE 3). Upon testing Hypothesis 3
regarding the moderating effect of procrastination on the relationship between FR
Knowledge and FR goals, we found a statistically significant negative effect (b = -.37, p
< .01). The negative sign taken by this interaction suggests that the effect of FR
Knowledge on Goals will be greater when procrastination is low than when it is high.
Hence, the data support Hypothesis 3. The direct conditional effects of FR Knowledge
on Goals at the two levels of the moderator are displayed in Table 4. Where the effect of
FR Knowledge on Goals was strong at the low level of Procrastination, it was
correspondingly weak and lacked statistical significance when Procrastination was high.
(TABLE 4). Figure2 depicts the moderation effect. This figure shows a strong
relationship between FR Knowledge and Goals when procrastination is low, whereas
high levels of procrastination result in a weaker relationship. (FIGURE 2).
On testing Hypothesis 4, we found a significant coefficient for the interaction term
(FR Goals x Procrastination) on Savings (b = -.30, p = .02, t = -2.29, 95% CI [-.55, -
.04]), as Table 3 shows. Hence, we may conclude that Hypothesis 4 is also supported.
The negative sign of this interaction supports the conjecture that FR Goals will have a
stronger effect on Saving Behavior when Procrastination is low than when it is high.
The indirect conditional effect of Knowledge on Savings through Goals at the two
values of Procrastination is shown in Table 5, and described in Figure 3. (TABLE 5).
The results of Table 5 show that the conditional effect of Goal mediation is
statistically significant and strong when procrastination is low, but it is weak and it loses
significance when the level of procrastination is high (95% CI = [-.05, .10]). In view of
this result, the data supports Hypothesis 4. (Insert FIGURE 3).
Discussion

14
PROCRASTINATION AND RETIREMENT
The purpose of this study was to establish whether the relationship between
financial retirement knowledge and saving behavior was mediated by financial
retirement goals, and in turn whether procrastination moderates these relationships. To
this end, we carried out a longitudinal study involving three waves of data collection.
Using four different instruments, we found a consistent pattern of relationships between
financial knowledge and saving and investment behaviors.
In the first place, this study shows that the relationship between financial
knowledge and saving on behalf of is mediated by goals, suggesting that goals serve to
link more general motivational antecedents with performance in a specific area. These
findings should enrich debate over the relationship between financial knowledge and
responsible financial behavior (Johnson & Sherraden, 2007; Boisclair, et al., 2014).
Hence, our results support the hypothesis that this relationship is influenced by third
variables (Huston, 2010), such as cognitive skills (Gaurav & Singh, 2012), and the
complexity of financial decisions (McLaughlin & Somerville, 2013). In contrast to
existing research, then, this study provides evidence, previously lacking, to support the
mediation of third variables in the relationship between financial knowledge and saving
behavior (Mien & Thao, 2015).
Secondly, the present study shows that procrastination influences financial
outcomes. This is shown in two ways: to begin with, procrastination has a negative
effect on goal setting and then, when they have finally been set, it has a negative effect
on the expression of goals in actual behavior. In this regard, our evidence is also in line
with previous research which showed an interaction between financial goal strength and
planning worry in the prediction of retirement saving contributions (Neukam &
Hershey, 2003). Related to this point, other studies which have explored the role of
personality in the relationships between financial knowledge and behavior (Letkiewicz

15
PROCRASTINATION AND RETIREMENT
& Fox, 2014). Though we used self-reported measures of financial behavior, our
findings are consistent with the results reported in other studies applying objective
measures of wealth accumulation (Letkiewicz & Fox, 2014).
In the third place, if procrastination results from a problem of self-control (Ferrari,
Barnes, & Steel 2009), this would be a relevant aspect to address in early education
programs designed to foster long-term financial planning behaviors (McWhirter,
Luginbuhl, & Brown, 2014). The possibility that procrastinators have a poor self-image
again suggests a possible avenue for early intervention (Ferrari, Driscoll, & Díaz -
Morales, 2007).
Fourthly, our findings raise the question whether procrastination is specific to the
financial domain, or whether it is a broader individual trait. Klingsieck (2013a) claims
that procrastination appears as a specific phenomenon associated with different life
domains, but not extremely so, as demonstrated by his study performed in six domains.
Meanwhile, it is important to distinguish between procrastination as a form of
dysfunctional foot-dragging and strategic hesitation, which may be considered a normal
part of the decision-making process (Klingsieck, 2013b).
In the fifth place, the total explained variance in saving behavior does not exceed
30%, and in this light it seems reasonable to suppose that a significant number of
variables escaped our analysis. To begin with, the study does not address the attitudinal
and emotional aspects involved in the decision-making process, although preliminary
evidence suggests that the emotions may influence economic decisions (Hariharan,
Adam, Astor, & Weinhardt, 2015; Ifcher & Zarghamee, 2014), especially in the kind of
contexts, like retirement, that cause anxiety (Gutiérrez & Hershey, 2013). However, it is
not only negative emotions that need to be taken into account. Positive feelings like
hope also appear to drive preparation for age-related changes (Earl, et al., 2016). In the

16
PROCRASTINATION AND RETIREMENT
same vein, a recent study showed that perceived time may differ from clock time and
time compression – the perception that time passes more quickly than actual time-
would be a psychological phenomenon that also drives saving behaviors (Aadland &
Shaffer, 2015). Moreover, empirical research continues to accumulate evidence
regarding the impact of psychological biases on financial information processing, also
among experts (Resende & Zeidan, 2015). Taken together, these studies suggested that
future work may be to related procrastination to other variables, in order to increase the
explained variance of saving behaviors (O'Shea, Monaghan, & Ritchie, 2014).
Sixth, goal-setting and the expression of goals in actual behaviors occur in a context
subject to a range of social pressures, and peer comparison could therefore account for a
part of the unexplained variance in behavior, as various other studies in fact suggest
(Koposko, Kiso, Hershey, & Gerrans, 2015). Financial goals and behaviors are, of
course, a part of adult life, and in this light it is necessary to consider the very probable
presence of a life partner with whom the subject shares financial decisions. Partner
involvement in specific financial education measures and in other more general
financial socialization actions taken by employers might, then, have an impact on an
individual’s specific saving and investment behaviors (Eccles, Ward, Goldsmith, &
Arsal, 2013).
Finally, let us consider the limitations of this study. Despite its longitudinal design,
which allows us to draw conclusions as to the relationships between antecedents and
outcomes, the study was carried out on a small, unrepresentative sample. On the one
hand, the use of convenience samples has been often criticized because they would be
affected by unknown selectivity. On the other, national samples should allow us to
obtain generalizable results for the population of older adults as a whole
(Teerawichitchainan, & Knodel, 2015). However, this option entails a further restriction

17
PROCRASTINATION AND RETIREMENT
due to the reduced amount of participants aged 45 and over. Hence, a “two-stage
sampling” approach was adopted (Van Solinge, 2013), by selecting a specific pool of
small and medium-sized firms in Spain, and then invited their actual population of
workers approaching retirement in the firms concerned to participate. This procedure
was applied due to the ease of communication with the Human Resource Management
departments in small and medium-sized firms. Related to this point, the use of self-
reported data is a further limitation affecting our findings. In this regard, future studies
should use randomly selected, representative samples capable of linking the
participants’ responses to objective data, such as the amount of their savings and the
contributions to pension schemes and other investments they make each year.
Our findings suggest various possible interventions to help improve financial
planning for retirement. Financial education programs need to broaden their objectives
to include not only cognitive issues and information, but also the emotional factors and
executive functions affecting the relationship between financial knowledge, goals and
behavior (Rodríguez-Fernández, Ramos-Díaz, Ros, & Fernández-Zabala, 2015). If
procrastination can be defined as a character trait which adversely affects planning and
saving by some people, early interventions could be designed to strengthen self-image
and improve self-control in order to minimize the impact of stalling (Bauselas, 2014).
Meanwhile, coaching in the area of financial planning could help pension providers’
adult clients address their personal tendency to put off tasks and drag their feet (Disney,
Gathergood, & Weber, 2015). Assuming procrastination to be a general trait, moreover,
professional support could in fact improve task performance in all life domains and not
just in the area of financial behavior (Azkune, Almeida, Lopez, Chen, 2015; Lv, Guo,
Liu, Zhang, & Jocshi, 2015).

18
PROCRASTINATION AND RETIREMENT
To conclude, the importance of this study lies basically in its longitudinal nature, as
the relationships between financial planning antecedents and outcomes are rarely
explored over time and linked with influences stemming from other levels, like
personality traits. This approach should help improve our understanding of the factors
acting retirement saving and investment behavior.
References
Aadland, D., & Shaffer, S. (2015). Time compression and saving rates. Journal of
Neuroscience, Psychology, and Economics, 8(4), 217-240. Doi:
http://dx.doi.org/10.1037/npe0000044
Álvarez, O. (2010). Procrastinación general y académica en una muestra de estudiantes
de secundaria de Lima metropolitana [General and Academic Procrastination in
a simple of Secondary students in Metropolitan Lima]. Persona, 13, 159-177.
Atkinson A., & Messy, F. (2011). Assessing financial literacy in 12 countries: an
OECD/INFE international pilot exercise. Journal of Pension Economics and
Finance, 10, 657-665. Doi: 10.1017/S1474747211000539.
Azkune, G., Almeida, A., Lopez, D., Chen, L. (2015). Latest Trends in Human Activity
Modeling. DYNA, 90(4). 356. DOI: http://dx.doi.org/10.6036/7548
Bauselas, E. (2014b). Funciones ejecutivas: unidad-diversidad y trayectorias del
desarollo [Executive function: Unity-diversity and developmental trajectories].
Acción Psicológica, 11(1), 35-44. http://dx.doi.org/10.5944/ap.11.1.13790
Boisclair, D., Lusardi, A., & Michaud, P. C. (2015). Financial literacy and retirement
planning in Canada. Journal of Pension Economics and Finance,
http://dx.doi.org/10.1017/S1474747215000311
Brooks, G. (2013). A retirement Planning model with procrastination considered.
Proceedings of the Allied Academies’ Internet Conference, 15 (2), 1-6.

19
PROCRASTINATION AND RETIREMENT
Busko, D. A. (1998). Causes and consequences of perfectionism and procrastination: A
structural equation model. Doctoral Dissertation. Guelph, Ontario: University of
Guelph.
Catalán, M., Guajardo, J., & Hoffmaister, A. W. (2010). Coping with Spain's aging:
retirement rules and incentives. Journal of Pension Economics and Finance, 9,
549-581. Doi:10.1017/S1474747209990308.
Clark, R. L. & Newhouse, J. P. (2016). Challenges facing public retirement plans.
Journal of Pension Economics and Finance, 15, 249-253. Doi:
10.1017/S1474747215000499.
De La Fuente, A. & Doménech, R. (2013). The financial impact of Spanish pension
reform: A quick estimate. Journal of Pension Economics and Finance, 12, 111-
137. Doi: 10.1017/S1474747212000182.
Diseth, Å. & Kobbeltvedt, T. (2010). A mediation analysis of achievement motives,
goals, learning strategies, and academic achievement. British Journal of
Educational Psychology, 80, 671–687. Doi: 10.1348/000709910X492432
Disney, R., Gathergood, J., & Weber, J. (2015). Credit counseling: a substitute for
consumer financial literacy? Journal of Pension Economics and Finance, 14,
466-491. Doi: 10.1017/S1474747215000219.
Drever, A. I., Odders-White, E., Kalish, C. W., Else-Quest, N. M., Hoagland, E. M., &
Nelms, E. N. (2015). Foundations of Financial Well-Being: Insights into the
Role of Executive Function, Financial Socialization, and Experience-Based
Learning in Childhood and Youth. Journal of Consumer Affairs, 49, 13–38.
Doi:10.1111/joca.12068

20
PROCRASTINATION AND RETIREMENT
Earl, J.K., Bednall, T. C., & Muratore, A. M. (2015). A matter of time: Why some
people plan for retirement and others do not. Work, Aging and Retirement, 1, 1-
9. Doi: http://dx.doi.org/10.1093/workar/wau005
Eccles, D. W., Ward, P., Goldsmith, E., & Arsal, G. (2013). The relationship between
retirement wealth and householders' lifetime personal financial and investing
behaviors. Journal of Consumer Affairs, 47(3), 432-464. Doi:
http://dx.doi.org/10.1111/joca.12022
Ferrari, J. R., & Díaz -Morales, J. F. (2007). Procrastination: Different time orientations
reflect different motives. Journal of Research in Personality, 41(3), 707-714.
Doi: http://dx.doi.org/10.1016/j.jrp.2006.06.006
Ferrari, J. R., Barnes, K. L., & Steel, P. (2009). Life Regrets by Avoidant and Arousal
Procrastinators: Why Put Off Today What You Will Regret Tomorrow? Journal
of Individual Differences, 30(3), 163-168. Doi: http://dx.doi.org/10.1027/1614-
0001.30.3.163
Ferrari, J. R., Driscoll, M., & Díaz-Morales, J. F. (2007). Examining the self of chronic
procrastinators: Actual, ought, and undesired attributes. Individual Differences
Research, 5(2), 115-123.
Ferrari, J. R.; Johnson, J. L., & Mc Cown, W. G. (1995). Procrastination and task
avoidance: Theory, research, and treatment. New York, NY: Plenum Press. Doi:
http://dx.doi.org/10.1007/978-1-4899-0227-6
Gaurav, S., & Singh, A. (2012). An inquiry into the financial literacy and cognitive
ability of farmers: Evidence from rural India. Oxford Development Studies,
40(3), 358-380. Doi: http://dx.doi.org/10.1080/13600818.2012.703319

21
PROCRASTINATION AND RETIREMENT
Goldsmith, R. E., & Goldsmith, E. B. (2006). The effects of investment education on
gender differences in financial knowledge. Journal of Personal Finance, 5(2),
55-69.
Grable, J., & Lytton, R. H. (1999). Financial risk tolerance revisited: the development
of a risk assessment instrument. Financial Services Review, 8(3), 163-181. Doi:
http://dx.doi.org/10.1016/S1057-0810(99)00041-4
Gutiérrez, H. C., & Hershey, D. A. (2013). Impact of retirement worry on information
processing. Journal of Neuroscience, Psychology, and Economics, 6(4), 264.
Doi: http://dx.doi.org/10.1037/npe0000013
Han, S. D., Boyle, P. A., James, B. D., Yu, L., & Bennett, D. A. (2015). Poorer
financial and health literacy among community-dwelling older adults with mild
cognitive impairment. Journal of Aging and Health, 27(6), 1105-1117.
doi:10.1177/0898264315577780
Hariharan, A., Adam, M. T., Astor, P. J., & Weinhardt, C. (2015). Emotion regulation
and behavior in an individual decision trading experiment: Insights from
psychophysiology. Journal of Neuroscience, Psychology, and Economics, 8(3),
186-202. Doi: http://dx.doi.org/10.1037/npe0000040
Hastings, J. S., & Mitchell, O. S. (2011). How financial literacy and impatience shape
retirement wealth and investment behaviors. National Bureau of Economic
Research. Working paper No. 16740. Doi: http://dx.doi.org/10.3386/w16740
Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process
analysis: A regression-based approach. New York, NY: Guilford Press.
Hershey, D. A., & Mowen, J. C. (2000). Psychological determinants of financial
preparedness for retirement. The Gerontologist, 40(6), 687-697. Doi:
http://dx.doi.org/10.1093/geront/40.6.687

22
PROCRASTINATION AND RETIREMENT
Hershey, D.A., Jacobs-Lawson, J.M., & Austin, J.T. (2013). Effective Financial
Planning for Retirement. In M. Wang (Ed.), The Oxford Handbook of Retirement
(pp. 402- 430). Oxford, New York: Oxford University Press.
Hershey, D.A., Jacobs-Lawson, J.M., Mc Ardle, J.J., & Hamagami, F. (2007).
Psychological foundations of financial planning for retirement. Journal of Adult
Development, 14(1), 26-36. Doi: http://dx.doi.org/10.1007/s10804-007-9028-1
Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2),
296-316. Doi: http://dx.doi.org/10.1111/j.1745-6606.2010.01170.x
Ifcher, J., & Zarghamee, H. (2014). Affect and overconfidence: A laboratory
investigation. Journal of Neuroscience, Psychology, and Economics, 7(3), 125-
150. Doi: http://dx.doi.org/10.1037/npe0000022
Jacobs-Lawson, J.M., & Hershey, D.A. (2005). Influence of future time perspective,
financial knowledge, and financial risk tolerance on retirement saving behaviors.
Financial Services Review, 14(1), 331-344.
Johnson, E., & Sherraden, M. S. (2007). From Financial Literacy to Financial
Capability among Youth. Journal of Sociology and Social Welfare, 34(3), 119-
145.
Jones, J. E. (2005). College students’ knowledge and use of credit. Journal of Financial
Counseling and Planning, 16(2), 9-16.
Karraker, A. (2014). “Feeling Poor” Perceived Economic Position and Environmental
Mastery Among Older Americans. Journal of Aging and Health, 26(3), 474-494.
doi:10.1177/0898264314522296
Klingsieck, K. B. (2013a). Procrastination in different life-domains: is procrastination
domain specific? Current Psychology, 32(2), 175-185. Doi:
http://dx.doi.org/10.1007/s12144-013-9171-8

23
PROCRASTINATION AND RETIREMENT
Klingsieck, K. B. (2013b). Procrastination When Good Things Don’t Come to Those
Who Wait. European Psychologist, 18, 24-34. Doi:
http://dx.doi.org/10.1027/1016-9040/a000138
Koposko, J. L., Kiso, H., Hershey, D. A., & Gerrans, P. (2015). Perceptions of
Retirement Savings Relative to Peers. Work, Aging and Retirement, 2 (1), 65-72.
Doi: http://dx.doi.org/10.1093/workar/wav019
Lawrence, F. C., Thomasson, R. H., Wazniak, P. J., & Prawitz, A.D. (1993). Factors
relating to spousal financial arguments. Financial Counseling and Planning,
4(1), 85–93.
Leandro-França, C., Giardini Murta, S., Hershey, D. A., & Martins Barbosa, L. (2016).
Evaluation of Retirement Planning Programs: A Qualitative Analysis of
Methodologies and Efficacy. Educational Gerontology, 42 (7), 497-512. Doi:
http://dx.doi.org/10.1080/03601277.2016.1156380
Letkiewicz, J. C. & Fox, J. J. (2014). Conscientiousness, Financial Literacy, and Asset
Accumulation of Young Adults. Journal of Consumer Affairs, 48, 274–300. Doi:
http://dx.doi.org/10.1111/joca.12040
Lin, Q. C. & Lee, J. (2004). Consumer information search when making investment
decisions. Financial Services Review, 13, 319-332.
Locke, E. A. (2001). Self-set goals and self-efficacy as mediators of incentives and
personality. In M. Erez, U. Kleinbeck, & H. Thierry (Eds.), Work motivation in
the context of a globalizing economy, (pp. 13-26). Mahwah, NJ: Lawrence
Erlbaum Associates Publishers.
Loix, E., Pepermans, R., Mentens, C., Goedee, M., & Jegers, M. (2005). Orientation
toward finances: development of a measurement scale. The Journal of
Behavioral Finance, 6(4), 192-201.

24
PROCRASTINATION AND RETIREMENT
Doi: http://dx.doi.org/10.1207/s15427579jpfm0604_3
Lusardi, A. & Mitchell, O. S. (2011). Financial literacy around the world: an overview.
Journal of Pension Economics and Finance, 10 (4), 497-508. Doi:
http://dx.doi.org/10.1017/S1474747211000448.
Lv, J., Guo, J., Liu, Y., Zhang, W., Jocshi, A.. (2015). Approaches of Influence
Maximization in Social Networks with Positive and Negative Opinions. DYNA,
90(4). 407-415. DOI: http://dx.doi.org/10.6036/7583
Lytle, M. C., Clancy, M. E., Foley, P. F., & Cotter, E. W. (2015). Current Trends in
Retirement Implications for Career Counseling and Vocational Psychology.
Journal of Career Development, 42(3), 170-184.
doi:10.1177/0894845314545785
McLaughlin, O., & Somerville, J. (2013). Choice blindness in financial decision
making. Judgment and Decision Making, 8(5), 561-572.
McWhirter, E. H., Luginbuhl, P. J., & Brown, K. (2014). ¡ Apòyenos! Latina/o student
recommendations for high school supports. Journal of Career Development,
41(1), 3-23. doi:10.1177/0894845312470511
Mien, N., & Thao, T. (2015). Factors affecting personal financial management
Behaviors: evidence from Vietnam. Proceedings of the Second Asia-Pacific
Conference on Global Business, Economics, Finance and Social Sciences
(AP15Vietnam Conference).Vietnam, 10-12 July, 1-15.
Neukam, K. A., & Hershey, D. A. (2003). Financial inhibition, financial activation, and
saving for retirement. Financial Services Review, 12, 19-37.
Noone, J.H., Stephens, C. & Alpass, F. (2010). The Process of Retirement Planning
Scale (PRePS): Development and Validation. Psychological Assessment, 22(3),
520-531. Doi: http://dx.doi.org/10.1037/a0019512

25
PROCRASTINATION AND RETIREMENT
O' Donoghue, T., & Rabin, M. (2001). Choice and procrastination. Quarterly Journal of
Economics, 116, 121-160. Doi: http://dx.doi.org/10.1162/003355301556365
Robb, C. A., & Woodyard, A. (2011). Financial knowledge and best practice behavior.
Journal of Financial Counseling and Planning, 22(1), 60-70.
Resende, M., & Zeidan, R. (2015). Psychological biases and economic expectations:
Evidence on industry experts. Journal of Neuroscience, Psychology, and
Economics, 8(3), 160. Doi: http://dx.doi.org/10.1037/npe0000043
Rodríguez-Fernández, A., Ramos-Díaz, E., Ros, I., & Fernández-Zabala, A. (2015).
Relaciones de la resiliencia con el autoconcepto y el Apoyo Social Percibido en
una muestra de adolescentes. [Relations of Resilience to self-concept and
perceived social support in a sample of adolescents] Acción Psicológica, 12(2),
1-14. http://dx.doi.org/10.5944/ap.12.2.14903
Stawski, R. S., Hershey, D. A., & Jacobs-Lawson, J. M. (2007).Goal clarity and
financial planning activities as determinants of retirement savings contributions.
The International Journal of Aging and Human Development, 64(1), 13-32. Doi:
http://dx.doi.org/10.2190/13GK-5H72-H324-16P2
Steel, P. (2007). The nature of procrastination: A meta-analytic and theoretical review
of quintessential self-regulatory failure. Psychological Bulletin, 133, 65-94. Doi:
http://dx.doi.org/10.1037/0033-2909.133.1.65
Tang, N., Baker, A., & Peter, P. C. (2015). Investigating the disconnect between
financial knowledge and behavior: The role of parental influence and
psychological characteristics in responsible financial behaviors among young
adults. Journal of Consumer Affairs, 49(2), 376-406. Doi:
http://dx.doi.org/10.1111/joca.12069

26
PROCRASTINATION AND RETIREMENT
Teerawichitchainan, B., & Knodel, J. (2015). Economic status and old-age health in
poverty-stricken Myanmar. Journal of Aging and Health, 27(8), 1462-1484.
doi:10.1177/0898264315584577
Yaakub, N. F. (2000). Procrastination among students in institutes of higher learning:
Challenges for K-economy. The School of Languages and Scientific Thinking,
University Utara Malaysia. Retrieved from:
http://www.mahdzan.com/papers/procrastinate/.
Zimbardo, P. G. & Boyd, J. N. (1999). Putting time in perspective: A valid, reliable,
individual-differences metric. Journal of Personal and Social Psychology, 66,
742-752. Doi: http://dx.doi.org/10.1037/0022-3514.77.6.1271
Zirkel, S., & Cantor, N. (1990). Personal construal of life tasks: Those who struggle for
independence. Journal of Personality and Social Psychology, 58(1), 172-185.
Doi: http://dx.doi.org/10.1037/0022-3514.58.1.172

27
PROCRASTINATION AND RETIREMENT
Appendix Escala de Procrastinación General y Académica (Busko, 1998). [General
Procrastination Scale]
1. Cuando tengo una fecha límite para hacer algo, espero hasta el último minuto para
hacerlo. [When I have a deadline to do something, I wait until the last minute to do it]
2. Encuentro una excusa para no hacer lo que tenía que hacer. [I find excuses to not do
what I had to do].
3. Tiendo a perder mucho el tiempo. [I tend to waste a lot of time].
4. Aplazo la toma de decisiones difíciles [I postpone making hard decisions].
5. Casi siempre llego a tiempo a mis reuniones [I arrive at my meeting almost always on
time].
6. Cuando me canso de hacer una tarea, tiendo a aplazarla. [When I get bored of doing
an assignment I tend to postpone it].
7. Cuando me aburro de una tarea, tiendo a aplazarla. [When I get bored of an
assignment I tend to postpone it].
8. Me disgusta seguir pautas estrictas. [I dislike following strict guidelines].
9. Sin tener que desarrollar otra actividad importante, aplazo realizar una tarea.
[Without a having a more important assignment I postpone an assignment]
10. No puedo cambiar mi hábito de perder el tiempo. [I cannot change my habit of
wasting time].
11. Tiendo a descuidar las tareas que me son muy difíciles. [I tend to neglect
assignments that are too hard].
12. Me distraigo fácilmente cuando trato de concentrarme en hacer algo. [I get
distracted with ease when I try to concentrate on something].
13. Cuando tomo una decisión, la cumplo. [When I make a decision, I keep it].

28
PROCRASTINATION AND RETIREMENT
TABLE 1
Correlations and Descriptive Statistics
Variables
M
SD
1
2
3
4
1. FR Knowledge T1
3.3
.80
1
2. Procrastination T1
2.42
.53
.01
1
3. FR Goals T2
2.83
.81
.28**
-.11
1
4.Retirement Saving and
Investment Behavior T3
2.76
.93
.36**
-.09
.46**
1
Nota: N = 224, M=Mean, SD= Standard Deviation, T1= Time 1, T2= Time 2, T3= Time 3.
*p<.05; **p<.01

29
PROCRASTINATION AND RETIREMENT
TABLE 2.
Regression results for testing mediation of FR Goals (T2) in the relationships between
FR Knowledge (T1) and Retirement Saving and Investment Behavior (T3) (Hypothesis
2)
b
SE
t
a x b
EE
95% IC
Total effect FR Knowledge on Saving
Behavior
.42***
.07
5.77
Direct Effect: FR Knowledge Saving
Behavior
.29**
.07
4.19
Direct Effect: FR Goals Saving Behavior
.45**
.07
6.51
Indirect Effect: FR Knowledge  FR Goals
 Saving Behavior
.13
.04
[.06 .21]
Nota: N = 224. SE = Standard Error; IC= Confidence interval. Bootstrap = 5.000 samples.
**p < .01. ***p < .001.

30
PROCRASTINATION AND RETIREMENT
TABLE 3
Results of testing the Moderation of Procrastination both on the FR Knowledge-FR
Goals Relationships, and on the FR Goals - Retirement Saving and Investment Behavior
Relationship (Hypothesis 3 and Hypothesis 4)
Criterion variable: FR Goals (T2)
Predictor Variable
ba
SE
t
LLCI
ULCI
FR Knowledge (T1)
1.14
.28
4.06***
.58
1.69
Procrastination (T1)
1.00
.38
2.58**
.24
1.77
Interaction FR Knowledge x Procrastination
-.37
.11
-3.13**
-.60
-.13
R2
.13
F(3, 220)
10.9***
Criterion variable: Retirement Saving and Investment Behavior (T3)
Predictor Variable
ba
EE
t
LLCI
ULCI
FR Goals (T2)
1.17
.32
3.60***
.52
1.8
FR Knowledge (T1)
.25
.07
3.58***
.11
.39
Procrastination (T1)
.72
.37
1.94*
-.01
-1.4
Interaction FR Goals x Procrastination
-.30
.13
-2.29*
-.55
-.04
R2
.29
F(4, 219)
22.5***
Note: N = 224. a Unstandardized coefficients b
*p <.05;**p < .01; ***p < .001.

31
PROCRASTINATION AND RETIREMENT
TABLE 4
Results of testing Moderated Mediation of Procrastination in the Relationship between
FR Knowledge and FR Goals
Moderator
levels
Conditional
Effecta
Boot
SE
95% IC
Boot
LLCI
Boot
ULCI
Procrastination (T1)
1.89 (Low)
.43
.07***
.27
.59
2.9 (High)
.04
.10
-.15
.24
Note: N = 224. a Unstandardized coefficients b; SE = Standard error; IC= Confidence interval. LL= lower
limit; UL= upper limit. Bootstrap = 5.000 samples.

32
PROCRASTINATION AND RETIREMENT
TABLE 5
Results of testing Moderated Mediation of Procrastination in the Relationship between
FR Goals and Saving Behavior
Moderator levels
Conditional
Effecta
Boot
SE
95% IC
Boot
LLCI
Boot
ULCI
Procrastination (T1)
1.89 (Low)
.26**
.05
.17
.37
2.94 (High)
.01
.03
-.05
.10
Note: N = 224. a Unstandardized coefficients b; SE = Standard error; IC= Confidence interval. LL= lower
limit; UL= upper limit. Bootstrap = 5.000 samples.

33
PROCRASTINATION AND RETIREMENT
FIGURE 1.
Hypothesized model
FR Knowledge
T1
Retirement
Saving and
Investment
Behavior T3
FR Goals
T2
Procrastination
T1
H1
H2
H4
H3

34
PROCRASTINATION AND RETIREMENT
FIGURE 2
Moderation of Procrastination (T1) on the FR Knowledge (T1)-FR Goals (T2) relationship.
1
1,5
2
2,5
3
3,5
4
4,5
5
Low FR Knowledge
High FR Knowledge
Dependent variable
Low
Procrastination
High
Procrastination
FR Goals

35
PROCRASTINATION AND RETIREMENT
FIGURE 3
Moderation of Procrastination (T1) on the FR Goals (T2) - Saving Behavior (T3) relationship.
1
1,5
2
2,5
3
3,5
4
4,5
5
Low FR Goals
High FR Goals
Dependent variable
Low
Procastination
High
Procastination
Saving Behavior