The Effect of Financial Knowledge on Workers’ Expectation of Never Retiring

Authors

DOI:

https://doi.org/10.61190/fsr.v32i3.3584

Keywords:

retirement planning, expected retirement age, retirement adequacy, financial literacy

Abstract

We extend previous research on factors related to workers stating that they would never retire, by analyzing the impact of financial knowledge variables on the expectation. The never retire rate is related to objective financial knowledge, with a 20% rate for those who missed all questions, compared to 12% for those who answered all questions correctly. We find a similar pattern between subjective knowledge and the never retire rate. Using logistic regressions, we find that survey respondents who missed questions for objective financial knowledge are more likely to choose a never retire response than those who do not miss any questions. We also find that overconfident respondents are more likely to give a never retire response than underconfident respondents. Our results have implications for financial education and policies related to retirement, as well as for research on retirement adequacy.

Author Biographies

Sherman D. Hanna, Ohio State University

Sherman D. Hanna has taught undergraduate and graduate financial planning and consumer economics courses and advised graduate students at Ohio State University, Kansas State University, Auburn University and Southern Illinois University-Carbondale. He has published in Applied Economics Letters, Financial Services Review, Journal of Consumer Research, Journal of Consumer Affairs, Family and Consumer Sciences Research Journal, International Journal of Consumer Studies, Housing and Society, AAII Journal, Asia Pacific Advances in Consumer Research, International Journal of Human Ecology, Journal of Personal Finance and Journal of Family and Economic Issues.  He has been quoted in the Wall Street Journal, the New York Times, and numerous other news outlets.  He has presented papers at conferences in Asia and Europe. He has advised 37 PhD students, including some who are tenured faculty at universities in the United States, Korea and Taiwan, as well as others who have prominent positions in the financial industry. He was the founding editor of the Journal of Financial Counseling and Planning, the founding co-editor of the journal Housing and Society and has served on the editorial boards of Financial Services Review, the Journal of Consumer Affairs, the Journal of Financial Counseling, the International Journal of Human Ecology and the Journal of Family and Economic Issues.

Miss Lei Xu, Ph.D. Candidate, Department of Agricultural, Environmental, and Development Economics, Ohio State University

Lei Xu is a Ph.D. candidate with research field in agricultural, food, and health economics. She is currently on the 2023-2024 job market and available for job interviews. Her research areas include household food waste patterns, agri-food systems particularly specialty crop market, evaluations of food and agricultural policies (SNAP, Farm to School) on household food security and consumer food demand systems, policy impacts on health outcomes (sugar tax, tobacco tax).

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Published

2024-09-18

How to Cite

Zhang, Z., Hanna, S. D., & Xu, L. (2024). The Effect of Financial Knowledge on Workers’ Expectation of Never Retiring. Financial Services Review, 32(3), 20–31. https://doi.org/10.61190/fsr.v32i3.3584

Issue

Vol. 32 No. 3 (2024): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2024 Zezhong Zhang, Sherman Hanna, and Lei Xu

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