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Mapping the Minds of Retirement Planners

Author

Listed:
  • Douglas A. Hershey

    (Oklahoma State University)

  • Kène Henkens

    (Netherlands Interdisciplinary Demographic Institute, The Hague)

  • Hendrik P. van Dalen

    (Erasmus Universiteit Rotterdam)

Abstract

This study explored the psychological mechanisms that underlie the retirement planning and saving tendencies of Dutch and American workers. Participants were 988 Dutch and 429 Americans, 25-64 years of age. Analyses were designed to: (a) examine the extent to which structural variables were related to planning tendencies, and (b) develop culture-specific path analysis models to identify the mechanisms that underlie perceived financial preparedness for retirement. Findings revealed striking differences across the Netherlands and the United States not only among structural variables predictive of key psychological and retirement planning constructs, but also in the robustness of the path models. These findings suggest that policy analysts should take into account both individual and cultural differences in the psychological predispositions of workers when considering pension reforms that stress individual responsibility for planning and saving.

Suggested Citation

  • Douglas A. Hershey & Kène Henkens & Hendrik P. van Dalen, 2006. "Mapping the Minds of Retirement Planners," Tinbergen Institute Discussion Papers 06-038/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20060038
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    File URL: https://papers.tinbergen.nl/06038.pdf
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    References listed on IDEAS

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    Cited by:

    1. canegrati, emanuele, 2006. "The Single-Mindedness Theory: Micro-foundation and Applications to Social Security Systems," MPRA Paper 1223, University Library of Munich, Germany.
    2. Canegrati, Emanuele, 2007. "On redistribution effects of public debt amongst single-minded generations," MPRA Paper 2254, University Library of Munich, Germany.
    3. van Schie, Ron J.G. & Donkers, Bas & Dellaert, Benedict G.C., 2012. "Savings adequacy uncertainty: Driver or obstacle to increased pension contributions?," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 882-896.

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    More about this item

    Keywords

    retirement; pensions; financial planning; psychology; saving; uncertainty;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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