I Do … Want to Save: Marriage and Retirement Savings in Young Households

Knoll, Melissa A. Z.; Tamborini, Christopher R.; Whitman, Kevin

doi:10.1111/j.1741-3737.2011.00877.x

Cited by 54 publications

(34 citation statements)

References 58 publications

(74 reference statements)

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“…Results from Step 1 are marginal effects and results from Step 2 are coefficients. Consistent with prior literature (Bassett et al., ; Hira et al., ; Knoll et al., ), older Millennials had a higher probability of having a retirement account than their younger counterparts. Each one‐year increase in age increased the probability of having a retirement account by 15.5%.…”

Section: Resultssupporting

confidence: 87%

“…The percentage of retirement account ownership was low among young adults. For example, only 20% of adults between the ages of 22 and 35 had IRAs and <40% had a DC plan (Knoll, Tamborini, & Whitman, 2012). Researchers agree that young people generally have a lower participation rate in retirement accounts than older adults (Bassett, Fleming, & Rodrigues, 1998;Hira, Rock, & Loibl, 2009;Honig & Dushi, 2010).…”

Section: Retirement Account Ownershipmentioning

confidence: 99%

“…Marital status was found to be closely related to retirement account ownership as well. Researchers have demonstrated that married households were more likely to have retirement accounts, including DC plans and IRAs (DeVaney & Zhang, 2001;Knoll et al, 2012;Lusardi & Mitchell, 2007). Research has shown a positive relationship between education and retirement plan ownership (Carney & Gale, 2001;Hira et al, 2009;Lusardi & Mitchell, 2007;Yuh & DeVaney, 1996).…”

Section: Retirement Account Ownershipmentioning

confidence: 99%

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Millennials’ Retirement Saving Behavior: Account Ownership and Balance

Yao

Cheng

2017

Family & Consum Sci Res J

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Millennials is the largest population in the United States. Compared with their parents and grandparents, they have to shoulder more responsibilities to prepare financially for retirement. It is critical for Millennials to begin saving and investing for their retirements early in their careers. Few studies analyzed this generation's retirement saving behavior. Using data from the 2013 Survey of Consumer Finances, this study is among the first ones to examine the state of Millennials' retirement savings, including retirement account ownership and balance. Results show that only 37.2% of Millennials had any kind of account earmarked for retirement; and among those with a retirement account, the average accumulated amount was $21,333. Factors that affected retirement saving behavior included age; education; total household income and assets; job tenure; self-employment; having a retirement saving motive; having a defined benefit plan; overspending; and risk tolerance. This study provided initial insights that can help financial planners and educators, as well as policymakers understand Millennials' current retirement savings behavior and help them achieve a financially comfortable retirement.

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Section: Resultssupporting

confidence: 87%

Section: Retirement Account Ownershipmentioning

confidence: 99%

Section: Retirement Account Ownershipmentioning

confidence: 99%

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Millennials’ Retirement Saving Behavior: Account Ownership and Balance

Yao

Cheng

2017

Family & Consum Sci Res J

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“…Additionally, lower financial literacy is significantly more common among those who have historically either been either disenfranchised or experienced social disparities in US society. More specifically, lower levels of financial literacy are associated with demographic factors such as being female (Lusardi & Mitchell, 2008;Lusardi & Mitchell, 2011), unmarried (Knoll, Tamborini & Whitman, 2012), young (Lusardi, Mitchell & Curto, 2010), less educated (Lusardi & Mitchell, 2011), and African American or Hispanic (Lusardi & Mitchell, 2011). Current educational policies, such as The No Child Left Behind Act (2002), are aimed at helping to ameliorate some of these disparities in US society by eliminating gaps in educational outcomes experienced by many of these groups.…”

Section: Literature Reviewmentioning

confidence: 99%

Is Universal Financial Education Putting the Cart Before the Horse?

Simms¹

2014

JEBS

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This study evaluates the effectiveness of extant financial education in the United States (i.e., employer-provided education, financial education in high school, and financial education in college) via linear regression and logistic regression analyses conducted on data from the 2012 National Financial Capability Study (NFCS). It concludes that although formal financial education is associated with improved financial literacy above and beyond general educational attainment, employer-provided education and financial education in US high schools are frequently associated directly or indirectly with increased odds of an adverse personal financial event (i.e., foreclosure, bankruptcy, or being underwater). Financial education in college is either not significant or is indirectly associated with reduced odds of some these adverse events. Given these findings, it seems that generating and evaluating rigorous empirical evidence about effective methods and curriculums for teaching financial education should be an immediate policy priority rather than requiring universal financial education in haste. However, requiring universal financial education may be a worthy long-term goal, after these more immediate policy needs are achieved. These findings and recommendations contribute to the literature by helping to resolve relatively intense debate among researchers about the effectiveness of financial education via the first study that examines the efficacy of financial literacy in a nationally representative, US database.

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“…Moreover, both Chang (2005) and Duflo and Saez (2003) report that individuals make use of their social networks to obtain retirement saving and investment information; however, reliance on one's social network is a strategy more often adopted by lower-income individuals. And although numerous investigations demonstrate that married couples save more for retirement than single or divorced individuals (see Knoll, Tamborini, & Whitman, 2012), this effect is generally attributed to overall higher household incomes among couples as opposed to some form of social facilitation.…”

mentioning

confidence: 99%

Perceptions of Retirement Savings Relative to Peers

Koposko

Kiso

Hershey

et al. 2015

WORKAR

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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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I Do … Want to Save: Marriage and Retirement Savings in Young Households

Cited by 54 publications

References 58 publications

Millennials’ Retirement Saving Behavior: Account Ownership and Balance

Millennials’ Retirement Saving Behavior: Account Ownership and Balance

Is Universal Financial Education Putting the Cart Before the Horse?

Perceptions of Retirement Savings Relative to Peers

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