Attitudes, savings choices, level of knowledge and investment preferences of employees toward pensions and retirement planning: Survey evidence from Barbados

Abstract

This study draws on data from an online survey of a cross-section of Barbadian employees who are members of either defi ned benefi t or defi ned contribution schemes. The results were heavily consistent with those from the United Kingdom. Generally, employees lack the basic knowledge to manage their own pension plans and they often times treat issues pertaining to retirement with low priority. Furthermore, results show that an extremely high weighting is attributed to property and land as assets for retirement. One major fi nding that came out of the study was that there are cultural differences between the United Kingdom and Barbados, where in the United Kingdom there is an individualistic culture, in contrast to the collectivist culture of Barbados.

Is the Belgian youth ready to save for retirement under a defined contribution pension system?

“…Women have displayed relatively lower levels of financial literacy than men in many countries (e.g. Bucher-Koenen et al, 2012;Brown and Graf, 2013;Fornero and Monticone, 2011;Lusardi and Mitchell, 2011a;Millar and Devonish, 2009;Yu et al, 2015). Russia is a notable exemption since no gender gap has been found (Klapper and Panos, 2011).…”

Designing Better Pension Benefits Statements: Current Status, Best Practices and Insights from the Field of Judgment and Decisionmaking

“…However, multiple studies have shown that people may not provide adequate consideration of their financial needs in retirement. For instance, many people have no concept of how much they need to save to maintain their standard of living during retirement (Schellenberg and Ostrovsky, 2010;Millar and Devonish, 2009;Loewenstein, Prelec and Weber, 1999;Byrne, 2007). Retirement goal-oriented research has focused on the impact of stable retirement goals on well-being and psychological adjustment when leaving the labor force, but few have explored goals and their relation to financial planning for retirement (Hershey, Mowen and Jacobs-Lawson, 2003).…”

“…When asked about their expected income replacement rate upon retirement, the surveyed Dutch workers who showed lower financial literacy were more likely to overestimate retirement income replacement rates and less likely to be aware of the future uncertainty related to retirement income (Alessie, van Rooij and Lusardi, 2011; Rooij, Lusardi and Alessie, 2011). An online survey of Barbadian respondents conducted by Millar and Devonish (2009) also found a lack of planning for retirement, particularly among lowincome earners. Furthermore, pension investment was reported to be a low priority when thinking about retirement, while home ownership was considered the most valuable retirement asset (Millar and Devonish, 2009).…”

“…An online survey of Barbadian respondents conducted by Millar and Devonish (2009) also found a lack of planning for retirement, particularly among lowincome earners. Furthermore, pension investment was reported to be a low priority when thinking about retirement, while home ownership was considered the most valuable retirement asset (Millar and Devonish, 2009).…”

Predicting Retirement Preparation Based on Proactivity, Time Discounting and Theory of Planned Behaviour (TPB)

“…As stated by Ibrahim et al, (2012) Malaysian employees do not plan for their retirement because they take these issues for granted. Although many previous studies show the factor influencing investment for retirement in terms of the defined contribution for retirement preparation (Millar & Devonish, 2009;Weisbenner, 2002;Morrin, Inman, Broniarczyk Nenkov & Reute, 2012), where mostly conducted in a developed country.…”