Financial Market Participation and Retirement Age of the UK Population

M. Carmen Boado-Penas, Juan M. Nave and David Toscano ()
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M. Carmen Boado-Penas: Department of Actuarial Mathematics & Statistics, Heriot-Watt University, Edinburgh EH14 4AS, UK
Juan M. Nave: Department of Economic Analysis and Finance, Universidad de Castilla-La Mancha, 16071 Cuenca, Spain
David Toscano: Department of Financial Economics and Accounting, University of Huelva, 21002 Huelva, Spain

IJFS, 2023, vol. 11, issue 1, 1-12

Abstract: Recently, many papers have shown evidence of a positive association between financial market participation and wealth holdings. It is often claimed that individuals with a higher level of financial market participation exhibit a higher propensity for planning retirement. In their planning process, individuals seek to achieve an optimal wealth level before their retirement by considering both their average saving rate and their retirement age. In this paper, we tested whether UK individuals with a higher level of financial market participation and, therefore, with a higher propensity for planning retirement were more likely to delay their retirement age than individuals with lower financial participation. On the basis of regression analyses using the English Longitudinal Study of Aging (ELSA) database for waves 1–6, our results support the hypothesis of a positive relationship between financial market participation and retirement age, reinforcing previous results.

Keywords: financial market participation; wealth; business cycle; retirement age (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2023
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