Financial Planning for Retirement: A Psychosocial Perspective

Abstract

Retirement is a time of life that has grown ever longer in the developed world, and the number of pensioners has increased accordingly, questioning the strength of Social Security systems and the social safety net in general. Financial Planning for Retirement (FRP) consists of the series of activities involved in the accumulation of wealth to cover needs in the post-retirement stage of life. The negative short-, mid-, and long-term consequences of inadequate Financial Planning for Retirement do not only affect individuals, but also their extended families, homes, eventually producing an unwanted impact on the entire society. The Capacity-Willingness-Opportunity Model has been proposed to understand FPR, combined with Intentional Change Theory, a framework for understanding the process, antecedents and consequences of FPR. From this perspective, we propose this promising model, but there are a large number of variables that have not been included that offer novel ways to deepen our understanding of FPR. A focus on each dimension of the model, the role of age and psychosocial variables associated with demographic indicators such as gender, health status, and migration, allow us to provide a proposal of scientific advancement of FPR.

Procrastination and Personal Finances: Exploring the Roles of Planning and Financial Self-Efficacy

“…Previous studies have demonstrated that planning correlates positively with healthy financial behavior (Strömbäck et al, 2017; Topa et al, 2018). In the current study this correlation was significant but weak ( r = -0.14).…”

Financial Self-Efficacy and Disposition Effect in Investors: The Mediating Role of Versatile Cognitive Style

“…The current study had important practical implications. There are noted gender differences in financial behavior, such as financial risk-taking, retirement saving intention and behavior (Xiao et al, 2011; Ismail et al, 2017; Magendans et al, 2017; Panno et al, 2017; Topa et al, 2018). However, there was no gender differences in the disposition effect in the current study.…”

“…In the current study, we introduce the variable of financial self-efficacy (FSE), which refers to “one’s belief about their capability of organizing and executing courses of action to achieve one’s ultimate financial goals” (Forbes and Kara, 2010). Recent research has found that FSE plays an important role in a series of financial decisions, such as financial inclusion (Mindra and Moya, 2017), financial planning for retirement (Topa et al, 2018), saving behavior (Xiao et al, 2011; Ismail et al, 2017; Magendans et al, 2017), and financial satisfaction (Asebedo and Payne, 2018). However, a few studies have investigated the association between FSE and the disposition effect.…”

Economic Attitudes as the Predictors of Working Activity of Older People

“…The aspects of pensioners' economic mind are still poorly studied. There are attempts to develop a financial planning model for pensioners taking into account their capabilities, abilities, and wishes [19].…”