Personality Traits and Economic Preparation for Retirement

TitlePersonality Traits and Economic Preparation for Retirement
Publication TypeReport
Year of Publication2012
AuthorsHurd, MD, Duckworth, ALee, Rohwedder, S, Weir, DR
InstitutionAnn Arbor, The University of Michigan
KeywordsConsumption and Savings, Health Conditions and Status, Net Worth and Assets, Retirement Planning and Satisfaction
Abstract

This paper assesses the effects of personality traits on economic preparation for retirement, wealth accumulation, and consumption, among persons 66 to 69 years of age. Among the five chief personality traits of neuroticism, extroversion, agreeableness, conscientiousness, and openness, we focus most on conscientiousness. We find levels of adequate economic preparation for retirement ranging from 29 percent to 90 percent and that conscientiousness positively affects the proportion of persons adequately prepared for retirement, while neuroticism negatively affects it. Both consumption and wealth increase with conscientiousness but wealth increases faster, indicating that more conscientious persons save more out of retirement resources.

URLhttp://www.mrrc.isr.umich.edu/publications/papers/pdf/wp279.pdf
Endnote Keywords

personality traits/Conscientiousness/Conscientiousness/retirement planning/wealth Accumulation/consumption/wealth

Endnote ID

69838

Citation Key5947