Do U.S. households perceive their retirement preparedness realistically?

Authors

  • Kyoung Tae Kima Department of Consumer Sciences, University of Alabama
  • Sherman Hanna

DOI:

https://doi.org/10.61190/fsr.v24i2.3238

Keywords:

Retirement assessment, Retirement adequacy, Cognitive ability, Survey of Consumer Finances (SCF), Financial education

Abstract

This study examines the divergence between objective and subjective assessment of retirement adequacy, analyzing U.S. households with a full-time worker age 35 to 60 in the 2010 Survey of Consumer Finances. Of those households, 58% have objective inadequacy, and 54% have subjective inadequacy, but only 52% have objective/subjective consistency. Our focus is on households with objective inadequacy, and what factors were related to being an optimist despite having objective retirement inadequacy. A logistic regression shows that households with defined benefit plans and with defined contribution plans are less realistic than those without plans, and as age increases, realism decreases.

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Published

2015-06-30

How to Cite

Kima, K. T., & Hanna, S. (2015). Do U.S. households perceive their retirement preparedness realistically?. Financial Services Review, 24(2), 139–155. https://doi.org/10.61190/fsr.v24i2.3238

Issue

Vol. 24 No. 2 (2015): Summer 2015

Section

New Original Submission

License

Copyright (c) 2015 Academy of Financial Services

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