Working Adults’ Metacognitions Regarding Financial Planning for Retirement

Kiso, Helen; Hershey, Douglas A.

doi:10.1093/workar/waw021

Cited by 18 publications

(8 citation statements)

References 60 publications

(67 reference statements)

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“…Thus, metacognition refers to beliefs about one's own cognitive system, the influences that affect it, attention and evaluation of the meaning of one's thoughts (Wells and Cartwright-Hatton, 2004 ). Due to the complexity of FPR and the worries associated with it, exploring the role of metacognitions is promising, as a recent empirical study showed (Kiso and Hershey, 2017 ). In particular, positive and negative beliefs about one's own worries, as well as cognitive trust and the self-attention, could play important roles in the relationships between capacity to plan and FPR.…”

Section: Further Extensionsmentioning

confidence: 99%

Financial Planning for Retirement: A Psychosocial Perspective

2018

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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.

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Section: Further Extensionsmentioning

confidence: 99%

Financial Planning for Retirement: A Psychosocial Perspective

2018

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“…In addition, the perception of social norms could affect the tendency to plan and save, as well as the impact of the person’s financial knowledge and skills (Hershey et al, 2013 ). Financial literacy has received the most attention concerning FPR and it has been related to saving for retirement (Hershey et al, 2007 ; Gutierrez and Hershey, 2013 ; Kiso and Hershey, 2016 ; Koposko et al, 2016 ).…”

Section: Financial Planning For Retirement (Fpr)mentioning

confidence: 99%

Economic Cognitions Among Older Adults: Parental Socialization Predicts Financial Planning for Retirement

Palací

Jiménez

Topa

2017

Front. Aging Neurosci.

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Drawing on the model on financial planning for retirement (FPR), the aim of this work is to explore how parental economic socialization both directly and indirectly affects FPR through the mediation of financial literacy, financial planning decisions and financial management. Data from a sample of 280 participants aged between 45 and 63 years were used. The results show that parental economic socialization directly and indirectly influences FPR. Moreover, parental economic behavior acts as a positive model for the development of financial literacy and skills and for decisions about FPR. All the variables increased the explained variance of FPR. Lastly, we discuss the process by which parental economic socialization is positively related to financial literacy and skills that impact on FPR, indicating some implications and future lines of research.

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“…Instead, they typically use heuristics and rules-ofthumb in planning their retirement behaviour. Moreover, retirement planning is affected by inevitable inertia and laziness, which may be linked to intellectual difficulties while planning for retirement- Kiso and Hershey (2017) show that about 40% of individuals report moderate to significant discomfort while thinking about retirement. Therefore, the pension plan should require participants to opt out instead of opting in.…”

Section: Retirement Planningmentioning

confidence: 99%

Myopic Savings Behaviour of Future Polish Pensioners

Buchholtz

Gaska

Góra

2021

Risks

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Low saving rates combined with low effective retirement age herald old-age poverty. This paper examines the preferred strategies of future Polish pensioners in order to sustain the standard of living in the future. A two-step approach is used: as a first-best strategy, we explore determinants of supplementary saving with binary logistic models; as a second-best strategy, we examine alternative options with principal component analysis. Future retirees rarely accumulate long-term savings, do not use dedicated instruments, and they start to save additionally far too late. Savings are concentrated in wealthier and better educated groups. Such myopia is governed by their political stance and not by awareness of dire prospects. Second-best strategies are based on optimistic assumptions about future health (seeking for additional jobs), on the assumed generosity of acquaintances or social institutions (relying on external assistance), or on rebelling. Given the increasing political power of elder generations, balancing the interests of workers and retirees will be an increasingly difficult task for policy makers.

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Working Adults’ Metacognitions Regarding Financial Planning for Retirement

Cited by 18 publications

References 60 publications

Financial Planning for Retirement: A Psychosocial Perspective

Financial Planning for Retirement: A Psychosocial Perspective

Economic Cognitions Among Older Adults: Parental Socialization Predicts Financial Planning for Retirement

Myopic Savings Behaviour of Future Polish Pensioners

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