Retirement Outcomes Research Articles

" Operationalizing Jitegemea Philosophy As A Model To Sustainable Development To Retirement Plan Among The Pulpit Workers

Purpose of the Study: This study aimed to investigate the operationalization of Jitegemea Philosophy as a model for the sustainable development of retirement plans among pulpit workers. Statement of the Problem Despite the importance of retirement planning, these workers face challenges such as low salaries, irregular income, and limited access to pension schemes, leading to financial insecurity in later life. The Jitegemea (self-reliance) philosophy, rooted in principles of self-sufficiency and sustainability, offers a potential model for addressing this gap. However, there is limited research and practical application of Jitegemea as a structured retirement planning model tailored to the specific needs of pulpit workers. Addressing these challenges is crucial to ensuring the financial security and well-being of PCEA pulpit workers in retirement. Therefore, this study explores how operationalizing the Jitegemea philosophy could provide a sustainable solution for enhancing financial security and well-being for clergy during retirement. Methodology: This study employed a qualitative research approach, utilizing semi-structured interviews with PCEA pulpit workers to explore their perceptions, experiences, and challenges related to retirement planning. A purposive sampling technique was used to select participants from various PCEA churches in Nairobi. Data were analyzed thematically to identify key themes and patterns related to retirement planning among PCEA pulpit workers. Key Findings: The study revealed that while many clergy face socio-economic barriers, religious beliefs, community support, and proactive planning can foster resilience. Participants expressed mixed emotions about retirement, some feeling apprehensive and others viewing it as a period of spiritual renewal. The study highlights the need for tailored support mechanisms, including financial literacy programs, fair compensation, and expanded pension schemes. Conclusion: The study emphasizes the importance of collaborative efforts among religious institutions, policymakers, and community organizations to improve retirement planning. Recommendation: Recommendations include financial education, compensation reform, and community support to ensure better retirement preparedness. Further research is suggested to evaluate the long-term effects of these interventions on clergy retirement outcomes.

Money illusion in retirement savings with a minimum guarantee

We investigate the impact of money illusion on the investment strategy and retirement outcomes of pre-retirees. Money illusion refers to the tendency of individuals to overlook the effects of inflation and focus on nominal rather than real terms. We solve and compare the optimal investment strategies for a pre-retiree who exhibits money illusion and aims to maximize the expected power utility of wealth at retirement, subject to a minimum guarantee constraint. While money illusion leads to welfare losses, implementing a minimum guarantee helps suppress these losses. However, guarantee constraints set under money illusion are ineffective in meeting inflation-adjusted constraints. Our findings emphasize the significant impact of money illusion on pre-retirees' investment strategy and retirement outcomes in the form of utility loss and the risk of falling short of the minimum guarantee.

Boomerang children and parental retirement outcomes

AbstractAs the share of U.S. adult children living with their parents increases, it is important to understand how children who “boomerang” back home impact their parents in their pre-retirement and post-retirement years. We use data from the Health and Retirement Study (HRS) to examine the effects of boomerang children on their parents’ labor market expectations and choices, as well as on their wealth, health, and life satisfaction. Event study analysis suggests that boomerang children return home due to short-term instabilities, such as negative shocks to marriage, income, and employment. We find that boomerang children are associated with a small increase in their parents’ subjective probability of working after age 65, and with a temporary increase in their parents’ non-housing debt. However, in the aggregate, we find no clear evidence that boomerang children impact parents’ current or future labor market choices, overall wealth, health, or life satisfaction. (We do find some evidence of an increase in hours worked among parents in the bottom wealth decile). One possible explanation for the lack of aggregate impact is that boomerang children contribute to household expenses. We find that boomerang events are associated with an increase in financial transfers from children to parents, particularly among parents in the bottom half of the wealth distribution.

Bibliometric analysis of “workers retirement theory” research

This article explores the concept of “workers’ retirement theory” in the context of urban sustainability, social policy, and public health. It uses a systematic literature review on the Scopus database and a conceptual framework to analyze scholarly publications on retirement. The study reveals that factors such as health status, income stability, and job characteristics significantly influence retirement timing. Retirement also impacts cognitive abilities, mental health, well-being, and life satisfaction, emphasizing the need for psychosocial outcomes in urban sustainability and public health strategies. Gender differences in retirement experiences highlight disparities in post- retirement outcomes and societal roles, informing policy on social equity and workforce management. The findings can inform academic research and practical strategies for enhancing retirement readiness in sustainable urban environments. The study concludes that societal attitudes towards retirement and older workers influence individual experiences and opportunities in post-career phases. Qualitative studies offer insights into the lived experiences of retirees from diverse socioeconomic backgrounds, while theoretical models and frameworks conceptualize retirement as a process and transition.

Delivering Improved Retirement Outcomes at Scale: The Impact of Missing Personal Information on Retirement Income Strategies

Delivering Improved Retirement Outcomes at Scale: The Impact of Missing Personal Information on Retirement Income Strategies

Did the Superbowl Ad Curse Heighten Defined Contribution Plan Fiduciary Duties?: Deciphering the Legal and Ethical Landscape of Cryptocurrency Options in 401(k)s

Regulating cryptocurrency’s place in America’s most popular retirement savings vehicle generates thorny legal, ethical, and social justice dilemmas. Too little regulation could hurt those at highest risk of underfunded retirement. Too much could exacerbate existing racial, ethnic, and gender inequities. Though recent regulatory efforts suggest 401(k) administrators violate their fiduciary duty of care by offering cryptocurrency investment options to plan participants, the established fiduciary regime protects 401(k) plan participants from cryptocurrency risk while respecting their savings preferences. Yet, the current framework falls short of ethically and equitably serving all plan participants, particularly members of underserved communities— a problem largely unaddressed in academic, industry, or regulatory discourse. This Article demonstrates how regulators’ needlessly paternalistic approach toward cryptocurrency options could disproportionately impact minority retirement savings participation. Applying the existing fiduciary framework and practical mechanisms that plan fiduciaries currently use would minimize cryptocurrency risk to participants without rewriting the rules governing plan administration. This Article also proposes a novel, scientifically supported method by which fiduciaries should convey retirement planning information to improve retirement outcomes for all: via non-traditional media.

Improving retirement outcomes by default: The case for an IRA QDIA

Improving retirement outcomes by default: The case for an IRA QDIA

RETIRING AFTER A JOB WELL DONE: HOW SUBJECTIVE CAREER EVALUATIONS IMPACT RETIREMENT ADJUSTMENT

Abstract An individual’s past, and how they reflect on it, may influence current and future well-being, with recent qualitative studies suggesting retirees’ reflections on their careers may relate to well-being in retirement. Establishing factors that may promote successful transition to retirement is vital. Particularly in light of population ageing and the subsequent increase in both the number of retirees and the length of retirement. The aim of our study was to investigate the impact subjective career evaluations on retirement adjustment at follow-up. Using data from across three waves of the NIDI Pension Panel Study, (conducted in 2015,2018, and 2023) we examined the pre-retirement career evaluations of a sample of Dutch older workers (N= 3566), factors associated with these evaluations, and the impact of subjective career evaluations on retirement at five or eight-year follow-up. The results of our ordinal logistic regression models showed that how individuals evaluated both the work (b= 0.15 p=.001) and family (b= 0.12 p=.001) domain of career was positively associated with retirement adjustment, with those who evaluated their careers more favorably reporting fewer problems adjusting to retirement. Our results demonstrate the long-term impact of subjective career evaluations and highlight the need for additional research evaluating their predictive utility for other important outcomes in older adulthood such as life satisfaction and health. These findings could also be applied to identify and deliver interventions for those at risk of less favorable retirement outcomes.

Back to the funding ratio! Addressing the duration puzzle and retirement income risk of defined contribution pension plans

Effective risk management in pension funds requires the use of appropriate long-term risk and performance indicators. However, Defined Contribution (DC) pension plans currently rely on short-term metrics that don't align with the retirement income goals of beneficiaries. Against this backdrop, we introduce a funding ratio measure for DC plans defined as the plan assets divided by accrued benefits derived from any given (defined) stream of contributions. The funding ratio's denominator is the present value of the total retirement income achievable if all contributions had been invested in fully amortizing fixed-income portfolios called retirement bonds. We also use the retirement bonds to introduce a class of target-income strategies that can effectively reduce income risk as retirement approaches, but also secure minimum funding ratio levels. These simple asset allocation rules strongly dominate the standard target-date fund strategies routinely used by DC plans, in terms of retirement outcomes for beneficiaries.

A longitudinal examination of the role of social identity in supporting health and well-being in retirement.

Social factors are major determinants of the success of retirement transitions. However, we do not yet fully understand the nature and basis of this impact, particularly as it relates to social group belonging. To address this issue the present article investigated the role that social group memberships play in supporting people's health and well-being in the early phase of transitioning to retirement. More specifically, we drew on the social identity model of identity change (SIMIC) to examine two pathways in which social group processes are theorized to influence adjustment to life change-social identity continuity and social identity gain. To test these pathways, a sample of Australian workers who had transitioned to retirement in the last 12 months (N = 170) were surveyed about their (a) preretirement multiple group memberships and postretirement maintained and new group memberships and (b) their perceived physical health, mental health, and life satisfaction after retirement. While preretirement group memberships did not affect retirement outcomes directly, they supported them indirectly by enabling people both to maintain some existing group memberships and to gain some new group memberships postretirement; as predicted by SIMIC. These findings confirm the importance of social factors and of social group membership in particular, for retiree health and well-being. Theoretically, they support the generalizability of SIMIC and its capacity to explain adjustment to diverse life changes including retirement. (PsycInfo Database Record (c) 2023 APA, all rights reserved).

A latent profile analysis of the nature of social group memberships and their contribution to retirement outcomes.

Positive experiences of groups (e.g., the extent to which groups are important and supportive) tend to be associated with better retirement adjustment outcomes. However, group experiences are not always positive, and we know little about their varied contribution to adjustment outcomes. We addressed this gap by exploring the nature of social group memberships - in terms of varying positive and negative experiences of groups - to better understand how social group memberships shape retirement adjustment, life satisfaction and mental health. A latent profile analysis (using data from 489 retirees and their membership of 1887 groups) identified four profiles of social group memberships: optimal (63%), slightly straining (13%), low-supportive (18%) and ambivalent (6%). Subsequent regression analysis showed that these different profiles of group membership were differentially associated with retirement adjustment outcomes: belonging to more optimal groups was associated with better perceived adjustment, higher life satisfaction and better mental health, while belonging to slightly straining and ambivalent groups contributed to poorer adjustment, lower life satisfaction and greater depression. These findings have implications for theory and practice, not least because they advance our understanding of the diversity of people's group memberships and their contribution to retirement and health outcomes.

FINANCIAL LITERACY & FINANCIAL PLANNING FOR RETIREMENT IN PAKISTAN: CASE OF ACADEMICIANS IN PUBLIC UNIVERSITIES OF KP

This study aimed to analysis financial literacy level and financial planning for retirement willingness of academicians in public universities of KP. Financial planning for the retirement and financial literacy has been a discussionable topic among researcher in the recent times because of their contribution in planning for peaceful life after retirement. In this paper researcher analyze financial planning for retirement and level of financial literacy academicians in public universities of KP, Pakistan. Quantitative research design was used and data was collected by using survey approach via convenient sampling. Questionnaire was distributed among sampled population of 275 different scale teachers. After analysis by using SPSS 25v findings elaborates positive and significant association among the study variables. The findings reveals that academicians who have enough financial knowledge are worried & steps forward for future financial strategies for life after retirement. They are looking for investment which will give them good & save returns in future. Results of study are helpful for financial institutions & government to divert focus toward financial literacy of individuals which helps them in making financial plans for retirement effectively. Faculty could use study's findings to develop curriculum that addresses impact of financial literacy on financial planning for retirement outcomes.

Investment and Retirement Planning – A Conceptual Analysis

Purpose: The aim of this study is to examine the intricate interplay between investment strategies and retirement planning through a comprehensive conceptual analysis. This study aims to provide a holistic conceptual analysis that guides sound financial decision-making for a secure and fulfilling retirement by thoroughly examining the complex relationship between investment strategies and retirement planning and drawing conclusions from empirical investment and retirement theories.
 
 Theoretical framework: The research draws upon a multidisciplinary approach, integrating theories from finance, economics, and psychology to develop conceptual understanding that illuminates the complex dynamics influencing individuals' investment decisions within the context of retirement planning.
 
 Approach: Employing a qualitative research design, this study utilizes an extensive literature review and content analysis of scholarly articles, reports, and expert opinions to develop a nuanced understanding of the factors shaping investment behaviors and retirement preparedness.
 
 Findings: The results of this analysis highlight the critical role of risk tolerance, financial literacy, psychological biases, and socio-economic factors in shaping individuals' investment choices and retirement planning strategies. Moreover, the study underscores the significance of early and strategic investment decisions in ensuring a financially secure retirement.
 
 Research, practical & social implications: Research, Practical & Social implications: The study's insights offer a valuable resource for financial advisors, policymakers, and individuals seeking to optimize their investment and retirement strategies. By elucidating the underlying mechanisms driving investment behavior, the research informs the development of tailored advice, educational initiatives, and policy interventions that enhance retirement preparedness and overall financial well-being.
 
 Originality/Value: Furthermore, the study contributes to a broader societal understanding of the implications of investment choices on individuals' long-term financial security, thus fostering a more financially resilient aging population. Originality/value: The value of the study lies in its holistic approach to dissecting the intricacies of investment decisions within the realm of retirement planning. By synthesizing diverse theoretical perspectives, this research offers a comprehensive framework for comprehending the multifaceted factors that influence investment behaviors and retirement outcomes. The study's unique contribution lies in its ability to bridge the gap between academic research and practical application, providing actionable insights that have the potential to drive positive financial behaviors and reshape retirement planning paradigms.

Racial and Ethnic Disparities in Retirement Outcomes: Impacts of Outreach

We review select literature on racial and ethnic disparities in retirement outcomes in the United States and the impact of outreach on such outcomes. First, there are significant disparities in retirement outcomes, reflecting a long history of racism and structural barriers. Second, there is comparatively little work on the differential impact of retirement outreach across race and ethnicity. Future work should consider designing interventions that cater to the needs of specific demographic groups, for example, by embracing the fact that Blacks, Hispanics, and Whites acquire retirement information from different sources. Future work should also incorporate behavioral insights, particularly from prior interventions, and innovate on methodologies for data collection, linking, and analysis.

How Targeting the Size, Value, and Profitability Premiums Can Improve Retirement Outcomes

How Targeting the Size, Value, and Profitability Premiums Can Improve Retirement Outcomes

Boomerang Children and Parental Retirement Outcomes

Boomerang Children and Parental Retirement Outcomes

Practical Applications of Women in Retirement: Living Longer, Less Money Saved

In <ext-link><bold><italic>Women in Retirement: Living Longer, Less Money Saved</italic></bold></ext-link>, from <bold><italic>The Journal of Retirement</italic></bold>, <bold><italic>Special 2022 Issue On Race, Gender, and Retirement</italic></bold>, <bold>Toni Brown</bold>, a retirement strategist at <bold>Capital Group</bold>, addresses the actions the retirement industry can take to improve the retirement challenges faced by women. Because women live longer than men, they need to fund more years of retirement. However, due in large part to pay inequities, women generally earn less than men and consequently save less for retirement. Brown suggests that if retirement plans were better designed, women could gain a better retirement outcome. Rather than creating homogenous plans that apply industry and national averages, employers need to identify the unique differences of their specific employee base and build plans that better accommodate their employees. They also need to use the information they gain in their analysis to customize their communication plans for employees. Improved communications tailored to a unique employee group can increase the understanding of retirement issues and participation in retirement plan offerings. In addition, Brown suggests, building stronger defined-contribution plans and employing more automatic features also can increase participation and savings rates.

Debt, Illiquidity, and Financial Illiteracy as Barriers to Annuity Ownership

This article examines individuals’ balance sheets, financial situations, and retirement planning steps to understand the barriers to annuity ownership and identifies the financial and sociodemographic factors that contribute to annuity ownership. Using data from the 2018 National Financial Capability Study, we conduct an empirical analysis of individuals in the retirement-planning phase of the life cycle (ages 40–61) and individuals of retirement age (age 62 and over). We find that debt obligations, lack of access to liquidity, and low financial literacy are all likely barriers to annuity ownership; the annuity owners in our sample are more likely than the non-owners to have access to liquidity and to report higher levels of financial satisfaction. Results indicate that access to liquidity and to professional investment management are positively associated with annuity ownership. Furthermore, financial literacy could lead to increased take-up rates through improved access to liquidity and ultimately enhanced retirement outcomes.

Using the pension multiple to measure retirement outcomes

This paper presents a simple and intuitive measure of retirement income adequacy: the Pension Multiple which captures and quantifies the level of income for each future retirement year as a multiple of the government-provided social security pension. This Pension Multiple at each future retirement year is then mortality-weighted to produce an average Pension Multiple for the entire retirement. An expected shortfall from this average Pension Multiple is introduced to measure the potential shortfall at each future retirement year from the average Pension Multiple. A single measure of retirement income and potential shortfall is then calculated as the averaged Pension Multiple minus the averaged expected shortfall, which is called the adjusted Pension Multiple. Finally, any residual estate is also included as part of the retirement income adequacy measure. The Pension Multiple and estate residue can be calculated by any forecast model for future retirement income. In this paper, we use a robust stochastic forecasting model to demonstrate the effectiveness of using the Pension Multiple to measure and compare different retirement income strategies.

Gender Diversity among Defined Contribution Plan Administrators and the Potential Impact on Retirement Outcomes

This article explores how gender representation has varied among defined contribution plan administrators from 2000 to 2017 and the relation between gender and some potential measures of plan quality. We find that there has been a significant increase in gender diversity among defined contribution plan administrators, where approximately 30% of plan administrators were female in 2000, increasing to approximately 50% in 2017. We also find that plans run by female administrators have attributes that would widely be considered “better” than those run by male administrators, because they were more likely to exhibit better plan governance attributes, more likely to automatically enroll participants, and more likely to offer target-date funds.