Bequest expectations among the U.S. older adults: The roles of generational differences and personality traits

Abstract

This study used the 2012 and 2014 panels of the Health and Retirement Study, a nationally representative dataset, to examine the associations between personality traits, generational cohorts, and bequest expectations among elderly households in the United States. The results indicated that neuroticism was associated with a lower subjective probability of leaving a bequest, and extroversion was associated with a higher subjective probability of leaving a bequest. Income, assets, and educational attainment were also positively associated with self‐reported bequest expectations. Generational differences were observed in the subjective probabilities of leaving bequests. The results of this study help in understanding the psychosocial factors associated with leaving bequests in an aging society, and provide implications for financial planners, practitioners, and policy makers.

The relationship between parents' personality traits and leaving unequal bequests to children

“…The subsample analysis also found a negative relationship among single respondents. One of the factors that may partially explain these results is that single individuals may be less optimistic about leaving an inheritance (Fan & Chatterjee, 2019), and therefore, default to the more conventional approach of equal division.…”

“…Similar to conscientiousness the effect size for this personality trait was also small. Extraverts may be very confident in their ability to leave an adequate inheritance to all their children, regardless of the how inheritance is divided (Fan & Chatterjee, 2019). Further, these individuals may feel secure in the quality of their relationships with their children, and in particular, the child earmarked to receive a lower share (Pai & Ha, 2012).…”

“…Following the approach of a similar study by Fan and Chatterjee (2019), several demographic control variables were included in the analysis. Net worth was calculated as assets minus liabilities.…”

“…Using the 2012 and 2014 waves of the HRS, Fan and Chatterjee (2019) investigated the relationship between inheritance expectations and personality traits. A positive relationship was found with extraversion and conscientiousness, while a negative relationship was found with neuroticism.…”

“…The original purpose of the five‐factor model was to provide counselors and other mental health professionals a tool to better understand their patients' emotional, interpersonal, experiential, and motivational styles. Since its creation, the five‐factor model has been used to investigate numerous topics including the association between personality traits and relationship quality (Fingerman et al, 2006), financial well‐being (Borghans et al, 2008), and the expectation of leaving an inheritance (Fan & Chatterjee, 2019).…”