Effects of risk tolerance, financial literacy, and financial status on retirement planning

Heejung Park () and William Martin ()
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Heejung Park: Northern Michigan University
William Martin: Eastern Washington University

Journal of Financial Services Marketing, 2022, vol. 27, issue 3, No 1, 167-176

Abstract: Abstract In this study, we investigate the effects of retirement planning on the economic and psychological factors of consumers using a large sample drawn from the 2012 National Longitudinal Survey of Youth. Specifically, we examine the combined impact of risk tolerance, financial literacy, savings, income, and debt on consumers’ retirement planning behavior. Risk tolerance, financial literacy, income, and savings are all found to have positive relationships with retirement planning, though debt has no significant relationship with retirement planning. Also, higher levels of risk tolerance weaken the relationship between savings and retirement planning. Implications of these findings for the literature and the financial planning industry are provided as well as directions for future research.

Keywords: Financial decision-making; Retirement planning; Risk tolerance; Attribution theory (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1057/s41264-021-00123-y

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