Financial planning time horizon and end-of-life mortality expectations

Authors

  • Zhikun Liu EuroPacifica Consulting
  • Russell James III Personal Financial Planning Department, Texas Tech University
  • Qi Sun Pacific Life Insurance Company

DOI:

https://doi.org/10.61190/fsr.v31i2/3.3529

Keywords:

Financial decision making, Self-perceived life expectancy, Financial planning horizon, Behavioral finance

Abstract

Previous studies demonstrate that individuals’ financial planning time horizons significantly impact spending, saving, charitable giving, and bequest decisions. Using longitudinal and cross-sec- tional Health and Retirement Study data, the analyses in this paper reveal that older American adults’ financial planning horizons are strongly determined by their self-perceived life expectancy. Over time, the changes in self-perceived life expectancy, marital and retirement status, health condi- tions, and wealth level will cause individuals to shift their financial planning horizons. The insight gained in this study helps financial planners to better understand the factors driving changes in client financial planning horizons and consequent financial decision-making.

 

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Published

2023-12-15

How to Cite

Liu, Z., James III, R., & Sun, Q. (2023). Financial planning time horizon and end-of-life mortality expectations. Financial Services Review: The Journal of Individual Financial Management, 31(2/3), 107–120. https://doi.org/10.61190/fsr.v31i2/3.3529

Issue

Vol. 31 No. 2/3 (2023): Summer-Fall 2023

Section

New Original Submission

License

Copyright (c) 2023 Zhikun Liu, Russell James III, Qi Sun

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