The Association Between Financial Risk and Retirement Satisfaction

Authors

  • Blain Pearson Department of Personal Financial Planning, Kansas State University
  • Michael Guillemette Department of Personal Financial Planning, Texas Tech University

DOI:

https://doi.org/10.61190/fsr.v28i4.3436

Keywords:

Risk aversion, Retirement satisfaction, Financial planning

Abstract

A higher level of risky financial assets that a retiree holds may produce higher returns, resulting in utility gains. To test this hypothesis, a variable is constructed measuring retirees’ ratio of risky assets to total assets (risk ratio). Next, the association between the risk ratio and retiree utility is examined using a retirement satisfaction variable from the 1992-2014 waves of the Health and Retirement Study. The findings suggest that increases in retirees’ risk ratio is associated positively with increases in their retirement satisfaction. The results and ensuing discussion offer a new per- spective for retiree asset management.

Downloads

Published

2020-12-30

How to Cite

Pearson, B., & Guillemette, M. (2020). The Association Between Financial Risk and Retirement Satisfaction. Financial Services Review, 28(4), 341–350. https://doi.org/10.61190/fsr.v28i4.3436

Issue

Vol. 28 No. 4 (2020): Winter 2020

Section

New Original Submission

License

Copyright (c) 2020 Academy of Financial Services

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.