Retirement Well-being Research Articles

Análise dos Programas de Preparação para Aposentadoria (PPA) desenvolvidos por instituições públicas brasileiras

Este estudo objetivou analisar as características dos Programas de Preparação para a Aposentadoria (PPA), desenvolvidos por 35 gestores ou coordenadores de PPA, em igual número de instituições públicas brasileiras. Por meio de questionário, os gestores avaliaram itens como tempo de existência, metodologia, temas abordados, processo de acompanhamento e avaliação dos programas. Metade dos programas tinha até dois anos de existência; a maioria utilizava palestras, dinâmicas, vivências, workshop e coaching. Em geral, raras organizações realizavam acompanhamento e avaliações sistemáticas, especialmente para comprovar a eficácia dos programas no bem-estar dos aposentados, após saída da organização. Recomendações são fornecidas visando à sistematização, expansão e avaliação do PPA no Brasil.

Simplifying Choices in Defined Contribution Retirement Plan Design

In view of the growth and popularity of defined contribution pensions, along with the government’s growing attention to retirement plan costs and investment choices provided, it is important to understand how people select their retirement plan investments. This paper shows how employees in a large firm altered their fund allocations when the employer streamlined its pension fund menu and deleted nearly half of the offered funds. Using administrative data, we examine the changes in plan participant investment choices that resulted from the streamlining and how these changes might affect participants’ eventual retirement wellbeing. We show that streamlined participants’ new allocations exhibited significantly lower within-fund turnover rates and expense ratios, and we estimate this could lead to aggregate savings for these participants over a 20-year period of $20.2M, or in excess of $9,400 per participant. Moreover, after the reform, streamlined participants’ portfolios held significantly less equity and exhibited significantly lower risks by way of reduced exposures to most systematic risk factors, compared to their non-streamlined counterparts.

Navigating complex financial decisions at retirement: evidence from annuity choices in public sector pensions

AbstractChoices regarding the disposition of wealth at retirement can have substantial implications for retirement income security. We analyze the factors determining annuity payout option choices within the context of a public sector defined pension plan with no default annuity option. Using combined administrative records and survey data, we explore the role of individual and household characteristics as well as risk preferences, time preferences, and financial literacy. We also document retiree well-being and satisfaction with retirement decision making. The evidence is consistent with predictions over which households might benefit most from each annuity option. Comparing retirees who chose different types of annuities, we find that these groups of retirees report very different levels of well-being in retirement. All retirees report lower levels of retirement income security over time, with strong differences among those who chose different types of annuities.

Retirement Well-Being: A Systematic Review of the Literature

Abstract The objective of this systematic literature review was to investigate the variables that would improve well-being in retirement by analyzing relevant empirical studies. In the literature search, six keywords (retirement, positive psychology, well-being, satisfaction, happiness and quality of life) were used in six international academic portals. This search identified 403 articles, and those meeting the pre-established inclusion criteria were extracted. The 55 articles selected were analyzed based on nine categories: language, year, journal, country, objective, dependent variable, instruments, independent variables and results. The studies had a longitudinal, transversal design or reported on instrument creation and validation. The literature review pointed out a large number of variables, confirming the multidimensionality of the constructs. Aspects highlighted include health, economic situation, gender, marital status, interpersonal relationships, whether retirement was voluntary, retirement duration and leisure activities. A compilation of variables and an agenda for future studies are proposed based on the results of this review.

Healthy aging? An evaluation of sport participation as a resource for older adults in retirement

Growing disparities between quality and quantity of life may be one of the most significant health challenges of our time. Retirement is a significant transitional event that can impact quality of life outcomes. Drawing on the Resource-Based Dynamic Perspective Theory, successful adaptation from the retirement transition is dependent upon resources known to predict retirement well-being. The purpose of this study was to evaluate the relationship between sport participation and these resources. Data from surveys of two retirement communities in southeast Texas were collected (N = 373). Structural equation modeling was used to analyze the relationships between sport participation, resources, and retirement well-being. Findings from this research provide empirical evidence to support participation in sport as a positive influencer of resources in retirement, assisting continued human development as people age. Further, the concept of sport embeddedness, which describes people’s beliefs, social involvement, and behavioral involvement with sport, is advanced.

Validity Evidence of the Retirement Resources Inventory.

The current populational aging context requires that society reflect on the variables related with well-being and discuss ways of how to ensure them. The Conservation of Resources Theory (Hobfoll, 1989, 2002) posits that individuals who possess more material or social resources are more capable of resolving conflicts and dealing with stressful situations, thus maintaining good levels of well-being. However, there is a lack of instruments aimed at measuring the necessary resources for retirement well-being. The objective of this study was to translate and analyse the psychometric qualities of the Retirement Resources Inventory (RRI) (Leung & Earl, 2012) as applied to 1002 Brazilian retirees. Exploratory and confirmatory factor analysis were undertaken using two independent subsamples consisting of 401 and 601 retirees respectively. Two viable models arose from the exploratory analysis: A five-factor model, χ2(gl) = 816.644 (271); CFI = 0.88; GFI = 0.98; RMSEA = 0.07; R2 = 0.55; and a six-factor model, χ2(gl) = 1028.291 (400); CFI = 0.88; GFI = 0.98; RMSEA = 0.03; R2= 0.53, with good fit indices, but similar to each other. Confirmatory analysis pointed towards an instrument consisting of 29 items and five factors with good fit indices, χ2(gl) = 1,274(364); CFI = 0.87; TLI: 0.86; RMSEA: 0.06, corroborating the model proposed by Wang and Shultz (2010). The analyses also highlighted the need for actions that take into account the gender, age and region of the country where the retiree lives. Future cross-cultural studies are recommended seeing that retirement planning is an emerging issue that affects the world as a whole.

Adjusting to life in retirement: the protective role of new group memberships and identification as a retiree

ABSTRACTAmong the many factors that influence retirement adjustment, there is increasing recognition of the role played by people’s social relationships. In particular, research points to the benefits that joining new groups can have for people’s well-being when they experience life change. In three studies, we extend this research to assess the contribution that new groups and identities make to supporting the well-being and adjustment of people transitioning to retirement. Study 1, involving 302 retirees, demonstrates that joining new groups in retirement and developing a stronger sense of identification with retirees predicts life satisfaction after controlling for known predictors (e.g., financial planning, marital status, physical health status, retirement aspirations), while only retiree identification predicts adjustment. We then examine the extent to which multiple group memberships support retirement adjustment and well-being through the mediating role of new group memberships and retiree identification. This is first examined in a cross-sectional study of 90 retired academics (Study 2) and then in a two-wave study involving a general sample of 121 recent retirees (Study 3). Findings from both studies point to the importance of social group and identity gain in retirement adjustment and highlight the particular importance of retiree identification in the transition.

How financial literacy and impatience shape retirement wealth and investment behaviors

AbstractTwo competing explanations for why consumers have trouble with financial decisions are gaining momentum. One is that people are financially illiterate since they lack understanding of simple economic concepts and cannot carry out computations such as computing compound interest, which could cause them to make suboptimal financial decisions. A second is that impatience or present-bias might explain suboptimal financial decisions. That is, some people persistently choose immediate gratification instead of taking advantage of larger long-term payoffs. We use experimental evidence from Chile to explore how these factors appear related to poor financial decisions. Our results show that our measure of impatience is a strong predictor of wealth and investment in health. Financial literacy is also correlated with wealth though it appears to be a weaker predictor of sensitivity to framing in investment decisions. Policymakers interested in enhancing retirement well-being would do well to consider the importance of both factors.

Perception of Marketing Professionals of Pharmaceutical Industry towards Performance Evaluation System in Aurangabad (M.S.)

This study examined the relationship between components of self-determination and financial well-being of retirees in North-central Nigeria. A cross-sectional survey approach was employed to test the association between self-determination and financial well-being. A structured questionnaire was administered to a sample of 224 retirees were randomly selected from members of Nigeria Pensioners Association for the purpose of the study.The data were analyzed using regression analysis with the aid of structural equation model specifically using SPSS. The result indicated that there is a positive and significant relationship between self-determination and financial well-being of retirees. This underscores the significance of self-determination in enhancing retirees' chances to attain financial well-being in their older age. It was therefore suggested that, programs aimed at boosting the morale of would be retirees to belief in themselves be instituted by all stakeholders (government and other employers of labour) as well as retiree's unions since such will help them to be financially autonomous when their retirement benefits is being delayed. Thus, the study contributes to the extant literature on self- determination and provides evidence on the effect of self- determination on the financial well-being of retirees in a developing country.

A dream of a retirement: The longitudinal experiences and perceived retirement wellbeing of recent retirees following a tailored intervention linking best possible self-expressive writing with goal-setting

ObjectivesThe research aimed to analyse retirees’ experiences of a tailored positive psychology intervention (PPI) combining Best Possible Self (BPS) expressive writing with goal-setting and to explore its potential as an aid to retirement wellbeing. This is the first time, to our knowledge, that BPS and goal-setting have been employed as a combined approach.DesignThis was an experimental study design using qualitative analysis methods, namely interpretative phenomenological analysis, alongside participatory action research.MethodsThree recently retired women participated in the project. Semi-structured interviews and groups were used.ResultsThe intervention contributed to feelings of retirement wellbeing by boosting a number of meaning-related factors (such as self-awareness, purpose in life and intrinsic goal-progress), bringing about an overall improvement in hedonic-eudaimonic balance.ConclusionsFindings suggest a need for further research into the newly combined intervention and into its most appropriate delivery format(s) for retirees (e.g. online versus face-to-face). Given the intervention’s potential to elicit wellbeing-maximising goals, the current findings have relevance for populations beyond the retiree community.

Exploring Potential Linkages between Social Support, Retirement and Subjective Wellbeing among Older Indians: Does it a Challenge to Policy Makers?

Subjective wellbeing is an important component of wellbeing that benefits people by influencing their subjective feelings. Using the Building Knowledge Base on Population Ageing in India (BKPAI 2011) survey data, the study attempts to investigate the linkages between social support and subjective wellbeing (SWB) among older adults of age 60 and above in India. The path analysis revealed that the social support have an indirectly effect on SWB through mediating role of family income, education, religion and financial status. The social support explained 23% of the variation in SWB. The structural equation model were performed to test the relationship between the latent variables divided into exogenous and endogenous, with the former affecting the latter. Study also tested the reliability of the questionnaire scores and its criterion and structural validity of SWB. The results confirm the validity is suitable for the multidimensional assessment of SWB. Using instrumental variables approach there is moderate evidence of positive correlation and endogenous regressors social support yield unbiased and consistent and effect of being involuntary retired has a negative on SWB, but the effect is not significantly different from zero. However, this study doesn’t found significant positive effect between retirement and SWB. In view of the findings, the study calls for devising policy implications that contribute to support and wellbeing research for future.

Simplifying choices in defined contribution retirement plan design: a case study

AbstractThe growth and popularity of defined contribution pensions, along with the government's increasing attention to retirement plan costs and investment choices provided, make it important to understand how people select their retirement plan investments. This paper shows how employees in a large firm altered their fund allocations when the employer streamlined its pension fund menu and deleted nearly half of the offered funds. Using administrative data, we examine the changes in plan participant investment choices that resulted from the streamlining and how these changes might affect participants’ eventual retirement wellbeing. We show that streamlined participants’ new allocations exhibited significantly lower within-fund turnover rates and expense ratios, and we estimate this could lead to aggregate savings for these participants over a 20-year period of $20.2 M, or in excess of $9,400 per participant. Moreover, after the reform, streamlined participants’ portfolios held significantly less equity and exhibited significantly lower risks by way of reduced exposures to most systematic risk factors, compared with their non-streamlined counterparts.

Simplifying Choices in Defined Contribution Retirement Plan Design: A Case Study

The growth and popularity of defined contribution pensions, along with the government’s increasing attention to retirement plan costs and investment choices provided, make it important to understand how people select their retirement plan investments. This paper shows how employees in a large firm altered their fund allocations when the employer streamlined its pension fund menu and deleted nearly half of the offered funds. Using administrative data, we examine the changes in plan participant investment choices that resulted from the streamlining and how these changes might affect participants’ eventual retirement wellbeing. We show that streamlined participants’ new allocations exhibited significantly lower within-fund turnover rates and expense ratios, and we estimate this could lead to aggregate savings for these participants over a 20-year period of $20.2M, or in excess of $9,400 per participant. Moreover, after the reform, streamlined participants’ portfolios held significantly less equity and exhibited significantly lower risks by way of reduced exposures to most systematic risk factors, compared to their non-streamlined counterparts.

What I Know, What I Think I Know, and Whom I Know: Influence on 401(k) Plan Allocation Decisions

Employee-sponsored retirement plans (e.g., 401(k) plans) are one of the most critical benefit programs that recruit and retain talent by improving employees’ well-being and satisfaction with benefit programs. Thus, this research aims to examine what factors determine investment decision-making in employees’ retirement portfolio that will influence their retirement well-being. Using a sample of 435 employees who have 401(k) accounts, we investigated how objective financial knowledge (i.e., what I know; financial knowledge test score), financial knowledge network intensity (i.e., whom I know; social networks with people who are financially literate), and subjective (or perceived) financial knowledge (i.e., what I think I know) are associated with risk-taking and investment decision quality in their 401(k) portfolios. The results reveal the positive influences of objective financial knowledge and financial knowledge network intensity on risky asset allocations and investment decision quality. Objective finan...

Financial literacy and financial planning: Implication for financial well-being of retirees

This study examines how financial literacy, financial behaviour, family support (as another source of income), number of dependents, and retirement planning influence on the financial well-being of retirees in Cape Coast Metropolis of Ghana. A cross-sectional survey strategy was employed on 400 respondents randomly selected from 1500 members of the association to analyze the effect of financial literacy, financial behaviour, family support, number of dependents and retirement planning on financial wellbeing. It then tests their hypothesized relationships with the use of Partial Least Squares (PLS), a structural equation modelling technique. The results reveal that financial literacy, retirement planning and family support significantly impact the financial well-being of retirees. More importantly, the effect of family support and retirement planning on retirees’ financial well-being is stronger than the one of financial literacy. The findings imply that finance literacy and retirement planning should be promoted. In addition to policies aimed at bridging social cohesion and promoting family values should not be ignored the maximizing of financial well-being of retirees. The study contributes to the extant literature on financial literacy and provides evidence on the effect of financial literacy and financial planning on the financial well-being of retirees in a developing country. It has also provided support for the need of social cohesion.

The impact of behavioural economics and finance on retirement provision

The significant shift from defined benefit to defined contribution retirement funds in South Africa has led to many fund members bearing responsibility for a range of risks. Many of these risks, such as those related to investment, longevity and cognitive deterioration are unavoidable. Another category of risk is that related to the choices made by government, employers, trustees, advisors and/or individuals at either national, scheme or individual level. These choices may also pose a threat to a member's financial wellbeing in retirement. Behavioural economics and finance helps to explain the choices made by these stakeholders in the retirement industry. The authors explain this concept in the context of industry stakeholders and the unique South African economic and demographic landscape, focusing on defined contribution retirement funds. Key behavioural insights applicable to the retirement industry are explored and, where practical, illustrated by stakeholder behaviour. Possible ways to harness these insights in order to improve retirement wellbeing are then discussed.

Multiple Social Identities Enhance Health Post-Retirement Because They Are a Basis for Giving Social Support.

We examine the extent to which multiple social identities are associated with enhanced health and well-being in retirement because they provide a basis for giving and receiving social support. Results from a cross-sectional study show that retirees (N = 171) who had multiple social identities following (but not prior to) retirement report being (a) more satisfied with retirement, (b) in better health, and (c) more satisfied with life in general. Furthermore, mediation analyses revealed an indirect path from multiple social identities to greater satisfaction with retirement and better health through greater provision, but not receipt, of social support to others. These findings are the first to point to the value of multiple group membership post-retirement as a basis for increased opportunities to give meaningful support to others. We discuss the theoretical and practical implications for the management of multiple identities in the process of significant life transitions such as retirement.

The caregiving responsibilities of retirees: what are they and how do they affect retirees’ well-being?

ABSTRACTUsing data from the 2010 and 2012 American Time Use Surveys (ATUS) and the associated Well-being Modules (WBM), this article examines how caregiving affects the well-being of retirees who are caregivers. Different caregiving activities are examined, including caring for household adults, caring for non-household adults, and caring for children. Different aspects of well-being are examined, including how meaningful respondents find their activities and how happy, sad, tired, in pain, and stressed their activities make them. The results show that, controlling for selection into caregiving, most caregiving negatively affects the well-being of retirees. This suggests that policies that remove some of the caregiving burden from retirees would increase their well-being.

Resource Loss and Gain, Life Satisfaction, and Health Among Retirees in Spain.

This article focuses on retirement transition from the Conservation of Resources (COR) perspective to better understand how aged participants' perceptions of retirement losses and gains significantly explain retirement well-being. In this article, the mediation of social support in the losses-well-being relationship is explored. The study was conducted with a two-wave longitudinal design. Participants at T1 were aged Spanish workers (>64 years) and at T2 were retirees, with a final sample of 275, who had retired during the previous 6 months. Findings supported the assertion that losses better explain well-being than gains. In addition, specific losses revealed a higher explaining power of life satisfaction and health complaints depending on their content. Social support mediated between perceived losses and well-being. This study suggests that both perceived losses and gains associated with retirement and social support during retirement should be taken into account when addressing postretirement well-being.

Cumulative disadvantages of non-employment and non-standard work for career patterns and subjective well-being in retirement

This paper investigates how cumulative disadvantages of non-employment and non-standard work are affecting careers and subjective well-being of older Europeans from 13 countries. In previous research, unemployment, labour market inactivity and part-time work had negative effects, however they were seldom addressed in a common study and over the whole career. In two complementary analyses, first, the employment history of older Europeans is analysed with sequence analysis methods to show how non-employment and part-time work shape careers and to illustrate gender differences. In a second step, adverse career components are used to exemplify cumulative disadvantages on subjective well-being in old age. Data from the Survey of Health, Aging and Retirement in Europe (SHARE) is used for the analyses. After optimal matching and clustering of the retrospective employment history, the results indicate that women experience more turbulent careers with more periods of non-employment and part-time employment. The analyses of subjective well-being show that labour market inactivity and unemployment have negative effects in old age for men, but less for women. Part-time employment has a differentiated effect for women, however not for men.