Market Performance And The Timing Of Retirement

TitleMarket Performance And The Timing Of Retirement
Publication TypeJournal Article
Year of Publication2012
AuthorsYao, R, Park, E
JournalJournal of Personal Finance
Volume11
Issue1
Pagination10-48
KeywordsConsumption and Savings, Methodology, Net Worth and Assets, Retirement Planning and Satisfaction
Abstract

This study is the first to utilize nine interview waves of the Health and Retirement Study and multilevel discrete-time survival analysis to investigate the effect of market returns on individual elective retirement decisions. Individuals who retire at a market peak have an increased risk of shortening the longevity of their retirement income. Unfortunately, market returns were found to have a significant positive effect on the probability of retirement. Researchers, employers, financial educators and financial practitioners should help pre-retirees overcome the stock market's influence on their decision-making to avoid the negative effect of market sequencing on their retirement wealth. PUBLICATION ABSTRACT

Endnote Keywords

personal finance/methodology/Banking And Finance/Retirement planning/market returns/retirement wealth/stock market

Endnote ID

69540

Citation Key7734