Using Proactivity, Time Discounting, and the Theory of Planned Behavior to Identify Predictors of Retirement Planning

Berufliche Beratung Älterer

“…The former postulates that setting specific and challenging goals improves performance; while the latter explicates personal attitudes, behavioural norms, and sense of control as antecedents of behavioural intentions, that in turn predict actual behaviour. In line with the assumption of TPB, a recent study showed that these antecedents were positively associated with retirement planning although only for women and not for men (Griffin et al, 2012). Older women who RETIREMENT PLANNING 12 reported positive attitudes toward retirement planning perceived that retirement planning is socially appropriate and felt capable of planning their retirement, thus indicated greater levels of planning (Griffin et al, 2012).…”

“…In line with the assumption of TPB, a recent study showed that these antecedents were positively associated with retirement planning although only for women and not for men (Griffin et al, 2012). Older women who RETIREMENT PLANNING 12 reported positive attitudes toward retirement planning perceived that retirement planning is socially appropriate and felt capable of planning their retirement, thus indicated greater levels of planning (Griffin et al, 2012). Similarly, negative attitudes toward retirement were reported to decrease the likelihood of engaging in retirement planning (Kim & Moen, 2001).…”

“…First, individuals with a proactive personality are thought to show high self-initiative, focus on the future, and actively try to change and improve their environment (Parker, Williams, & Turner, 2006). In accordance with this assumption, persons scoring high on this trait were more likely to be prepared for their retirement (Griffin, Loe, & Hesketh, 2012). Second, individuals with high levels of time discounting-that is, the tendency to discount rewards as they become closer to a future or past time horizon (e.g., preferring a smaller reward in the near future to a larger reward in the far future; Bidewell, Griffin, & Hesketh, 2006)-were observed to plan less for their retirement (Griffin et al, 2012).…”

Perceptions of Retirement Savings Relative to Peers

“…Work in the cognitive arena, for example, shows that saving rates are tremendously impacted by one's level of financial and investment knowledge (Croy, Gerrans, & Speelman, 2010a;Lusardi & Mitchell, 2011;Noone, O'Loughlin, & Kendig, 2012;Van Rooij, Lusardi, & Alessie, 2011) and the quality and clarity of one's retirement goals (Petkoska & Earl, 2009;Stawski, Hershey, & Jacobs-Lawson, 2007). Complementing this line of work, studies of personality reveal that certain traits (such as conscientiousness, future time perspective, locus of control, emotional stability, and having a proactive personality) are positively related to planning and saving (e.g., Griffin et al, 2012;Hershey, Jacobs-Lawson, McArdle, & Hamagami, 2007;Hershey & Mowen, 2000;Noone, Stephens, & Alpass, 2010;Noone et al, 2012;Petkoska & Earl, 2009;Webley & Nyhus, 2006). As part of this investigation, we will examine the extent to which cognitive and personality variables are linked to individuals' perceptions of saving relative to their peers.…”

“…Social comparisons of this type (also known as peer comparisons) are not new to the psychological literature; indeed, it is a topic that has been extensively studied by social psychologists in a variety of ways over the years (see Corcoran, Crusius, & Mussweiler, 2011;Garcia, Tor, & Schiff, 2013;Hoorens &van Damme, 2012, andWheeler, 2000 for reviews). However, we were only able to identify one investigation that examined perceived social norms in relation to saving for retirement (Griffin, Loe, & Hesketh, 2012). The goal of the present study is to apply the concept of social comparisons, originated by Festinger (1954), and by extension social comparison biases, to the topic of financial planning for retirement.…”