A BSTR ACTDo individuals' perceptions of how much others save for retirement influence their own long-range financial saving decisions? In this study, social comparison theory was used as a theoretical touchstone for understanding the impact of interpersonal perceptions on saving behavior. Respondents (N = 224) reported not only the amount they had saved for retirement during the previous year, but they also reported perceptions of the magnitude of their savings relative to peers and completed 6 psychological scales related to retirement planning. A 2-stage ordinary least squares (OLS) regression approach was used to examine: (a) the extent to which nine demographic indicators were predictive of individuals' retirement savings practices, and (b) whether unexplained savings from the initial regression model could be hierarchically predicted using the 6 psychological scales and perceptions of one's savings relative to peers. The findings suggest that social comparisons do account for savings practices over and above demographic and psychological indicators. Results are discussed in terms of how individuals' implicit social comparisons might shape not only their perceptions, but also their saving behavior.

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The ability of individuals to think about their goals and imagine themselves in the future is one of the keys to developing a strategic life plan (Beach, 1998). This is a particularly important task in the context of developing a satisfying plan for retirement. In this investigation, image theory (Beach & Mitchell, 1987) was used as a foundation for exploring racial differences in individuals’ perceptions of the post-employment period. Specifically, Blacks, Whites, and Asians (n = 301, 300, 269, respectively) were asked to report perceptions of their future life satisfaction during retirement using a scale developed by Gutierrez and Hershey (2014). Mean score comparisons revealed that Blacks and Asians had significantly larger mean perceived future satisfaction levels than Whites. To explore the psychological mechanisms that underlie respondents’ perceptions, 3 separate race-based path analysis models were calculated using anticipated satisfaction scores as the criterion. Predictors in the models included: engagement in financial planning activities, retirement-related financial knowledge, retirement goal clarity, future time perspective, and a set of sociodemographic indicators. Substantial differences were observed in the amount of variance captured in the criterion, with the most variability accounted for among Asians, and the least variability accounted for among Whites. From a theoretical perspective, the findings contribute to the growing literature on race and retirement processes, and from an applied perspective, the results have implications for practitioners who seek to take race into account when developing psychologically based intervention programs.

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