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
Series TitleMRDRC Working Paper
Document Numberwp279
InstitutionMichigan Retirement and Disability Research Center, University of Michigan
CityAnn Arbor, MI
KeywordsConsumption and Savings, Health Conditions and Status, Net Worth and Assets, Retirement Planning and Satisfaction

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.

Endnote Keywords

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

Endnote ID


Citation Key5947