Determinants of the retirement assets and the amount in stock within retirement assets: Evidence from the Survey of Consumer Finances and the Health and Retirement Study

TitleDeterminants of the retirement assets and the amount in stock within retirement assets: Evidence from the Survey of Consumer Finances and the Health and Retirement Study
Publication TypeThesis
Year of Publication2012
AuthorsYang, T-Y, Feinberg, RA
AdvisorDeVaney, SA
DegreePh.D.
Number of Pages107
UniversityPurdue University
CityUnited States -- Indiana
Thesis Type3545418
Accession Number1238327087
KeywordsHealth Conditions and Status, Methodology, Net Worth and Assets, Other, Pensions, Retirement Planning and Satisfaction
Abstract

The purpose of this research was to investigate the determinants of the retirement assets held in Individual Retirement Accounts, Keogh accounts, and current and future pensions. A second purpose was to investigate the determinants of the amount in stock within those retirement assets. Building upon the theory of human capital, the theory of planned behavior, and the bargaining power model, this study proposed that human capital, attitudes related to finances, and the relative bargaining power of the spouse would influence an individual's retirement assets and the amount in stocks within the retirement assets. Using data from the Survey of Consumer Finances, Study 1 explored the relationship between the three proposed domains and the amount in retirement assets and the amount in stock within the retirement assets. In Study 2, the relationship between the proposed domains was examined using similar variables but with a relatively older sample (e.g., the Health and Retirement Study). The results of both studies supported the theory of human capital and the theory of health capital. Those who had higher education and those who had better health were more likely to have more in retirement assets, and they have more in the amount of stock within retirement assets. Those who saved regularly and were more likely to take risk when saving and investing had more retirement assets and they have more in the amount of stock within retirement assets. The results on the influence of the spouse on retirement assets and the amount in stock within retirement assets showed some support for the bargaining power model. The retirement assets and the amount in stocks within retirement assets were influenced by the spouse. Age, education, working status of the spouse, and who was the more financial knowledgeable person among the two would influence the retirement assets and the amount in stock within retirement assets of the household head. The results of the study supported the existing literature on human capital and health capital. There was some support for the bargaining power model. The results suggest that educators and financial advisors should encourage couples to discuss their plans about saving for retirement with each other and their advisors. However, many people will be single during some or all of their retirement so individual plans for retirement savings should also be carefully developed. This is an important role for educators and financial advisors. However, older adults with fewer resources (e.g. education, employer-sponsored pension plans) will continue to need the support of Social Security.

Notes

3545418 Psychology Yang, Ting-Ying 0351: Gerontology 2013-01-07 Stock Retirement The Survey of Consumer Finances Retirement assets Copyright ProQuest, UMI Dissertations Publishing 2012 2012 Health and environmental sciences The Health and Retirement Study Theory of planned behavior 74098002 1238327087 9781267776488 0621: Psychology 0508: Finance 66569 Social sciences n/a English 0386: Home economics 2841781051

URLhttp://search.proquest.com.proxy.lib.umich.edu/docview/1238327087?accountid=14667
Endnote Keywords

retirement planning

Endnote ID

69802

Short TitleDeterminants of the retirement assets and the amount in stock within retirement assets: Evidence from the Survey of Consumer Finances and the Health and Retirement Study
Citation Key6169