There are extensive studies on retirement covering education in general. The findings suggest that education is an important factor in affecting retirement planning preparedness (Hogarth, 1985; Joo&Pauwels, 2002). Education enables individuals to explore more information relating to their retirement planning and that sources of information will influence their decisions, attitude and intention to do retirement planning (Hogarth, 1985; Joo&Pauwels, 2002). Also, DeVaney (1995) addressed that the effect of education level may serve as a motivator or guidance for individuals to start the preparation for retirement planning. With the increase in age and educational level, individual tends to be more motivated to work on retirement planning preparation or take some action for their retirement (DeVaney, 1995).
Joo and Pauwels (2002) found that higher educational level allows one’s to experience and achieve greater confidence level in their retirement planning life. Men who had received higher education tended to be more confident in their retirement planning compared to those who had lower levels of educations (Joo&Pauwels, 2002). The level of education and confidence found to be positively related (DeVaney, et al., 1995). On the other hand, older women are found to be less likely to have higher education in general because of limited education which had been given to them in the past (Lusardi, 2004). The effects of education on women’s retirement makes women to be less financial literate or having knowledge on retirement and retirement planning (Lusardi, 2004; Lusardi& Mitchell, 2008). Joo and Pauwels (2002) suggested that women participation in retirement planning increases as they receive education.
In addition, Joo and Garman (1998...
... middle of paper ...
...financial education for their workers to increase their awareness as well as contribution for their retirement. This is due to financial information played a significant role in increasing contribution rate (Robert Clark and Schieber, 1998). Insufficient knowledge concerning the retirement savings process will enable the individual to make any optimal decisions regarding retirement savings. People can obtained information and make decision through socializing with others. There are researchers who believed that highly social people may be more likely to invest for their future saving (Bailey, Jeffrey J. Nofsinger, John J. and O’Neill, 2003). A study suggested that peer effects may be an important determinant of savings decisions. Their paper showed that peer effects are another source of extra-economic influence on people’s decisions (E. Duflo and E. Saez, 2002).
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
Personal Differences. In this case, Dan Richardson, a partner in Educational Pension Investments (EPI), founded EPI with a philosophy of maintaining low-risk investment portfolios with moderate income; a philosophy that has been in place for 50 years. This risk adverse philosophy found Dan considering the merits of a more aggressive investment approach to offset the fact that EPI’s growth has not kept pace with other investment opportunities. (Whetten & Cameron, 2011)
Only 23% of well-off retirees and 16% of all retirees polled are working today.Affluent nonretirees estimate they'll need only 53% of their pre-retirement income to support their retirement lifestyles. But well-off retirees say they actually require fully 71%. Fully 25% of affluent nonretirees think it's likely they will run out of money before they die vs. only 12% of well-off retirees.Affluent retirees single biggest regret is failing to put more money in tax-deferred retirees said they invested the maximum the law permits, compared with only 48% of the affluent nonretirees polled.Strategies1.
Haggerty, Sue (Jun-Aug2017) Retirement planning. Catholic Digest Vol. 81 Issue 7, p33-38. ISSN: 0008-7998 Accession Number: 123563838 Database: MasterFILE Premier 6p. http://www.catholicdigest.com, http://web.b.ebschost.com’umuc.edu/detail
Retirement Retirement seems to be one of the most often overlooked areas of people’s future plan. Simply because it seems so far away, it is an area that is subject to procrastination. People are expected to live longer now than ever before, this is another reason why young adults and teenagers are not worried about saving for their retirement. The baby boom generation, the seventy seven million people born between 1943 and 1960, face an entirely different retirement plan. As they began to retire, people are starting to think that there will be no money left and this will turn into a crisis. What will happen when seventy-seven million baby boomers begin to want the money they paid in… but it is not there? Retirement provisions such as Social Security, IRA’s, and 401k’s are there to help when you are deciding how to save money. Social Security started a long time ago, in the 1930’s, when Franklin D. Roosevelt was president. He was elected president in November 1932. By March there were over thirteen million people that were unemployed, and almost every bank was closed. Franklin D. Roosevelt proposed a sweeping program to being recovery to business and to agriculture and relief to those who were in fear of losing their farms and homes to being unemployed. In 1935, recovery was slowing arriving, but more And more people were turning against Roosevelt’s New Deal program. This led Roosevelt to a new program of reform, which we know today as social security.
The Australian government will increase the age pension from 65 to 70 by 2035(Australian Department of Human services [AU]). This announcement has lots of challenges for Australian people who are under 50; some people support the rise and find it beneficial for the future economical life. However, others are against the announcement as it has lots of concerns for their future plan, as they have to work longer to save more for their retirement. The current population ageing put pressure on the young workers who support retirees and their families, at the same time it affect the economic development. So the rise of pension has advantages and disadvantages on the future life standard of most Australians. It is beneficial decision from the government to provide a productive and qualified future life.
...ation, planning, and considerations, retirement funds can be extremely low and can therefore cause severe hardship. It may cause retirement to be pushed back past the age of 70 to have access to enough funds. It could also bear stress to other family members, children for example, which would have to help out financially and delay their retirement plans. Utilizing the proper education, research tools, guidelines, and determination retirement plans can be set in place early to leave room to fluctuate over time. It is no one else’s responsibility but one’s own to prepare for their future, and therefore should take matters in their own hands. The question now is, are you prepared for retirement, and if not what steps are you going to take?
Living and going trough a retirement process may bring some stressfully moments, but also it may bring peace and relaxation. Retirement is the conclusion of a stage in life and the begging of a new stage. The new stage must be live in peace, joy and without worries. The importance of be preparing well for retirement will make things run easier.
In recent years the Canadian government enforced termination of mandatory retirement. Lifestyles have changed lifespans have increased and experience is essential in today’s world. Statistics show individuals want to continue working after sixty-five and continue to contribute while still able as education has a significant impact on individual’s willingness to retire. Factors such as demographics, lifestyles and the financial market has increased the retirement age in recent years.
With increasing life expectancy and a contracting retirement income system households face an immense challenge in ensuring a secure retirement. Working longer is often viewed as a safe bet way to increase retirement incomes (Munnell and Sass, 2008). Moreover, new patterns of retirement have started to emerge such as; gradual retirement, phased retirement, and unretirement (Choi, Goode, and Tang, 2012). These fruitions create more friction for baby boomers entering retirement, a friction that causes firms to become resistant when creating new jobs. For example, it is far more cost efficient for a firm to reduce the work of an older employee (think gradual retirement) without training and bringing in a new worker to replace the older worker’s role (Filipczak, Raines, and Zernke,
Retirement is one of the most important crossroads we face in life. It involves a fundamental change in lifestyle, one that calls for a totally new outlook on how we approach each day. All our lives we have been conditioned to think in terms of saving for our retirement years. Society has created this mystique about this time in our lives when we magically transform into different people with different lives when really we are the same people with different day to day lives. According to Medina, (2012) planning for retirement isn’t a "walk in the park" because for many people, debts are high while income is low.
Many students in grade school don’t obtain money very often because they do not have a steady income, so they are prone to spend the money they get. For example, if a student gets money for a holiday, the first thing that comes to mind is to spend it on something they want because they are not used to having money. They don’t know the next time they will get more money so they don’t see the importance of saving. Since there would be a constant income a student will see the effect of saving because their amount of money would constantly be increasing which will motivate them to keep saving. If students learn how to save while they are younger they will be more successful in life, and they will also have that money to use when they graduate.
Women have had quite a few hurdles to get over since the 1950's. In 1958 the proportion of women attending college in comparison with men was 35 percent. (Friedan,
The importance of saving for retirement is all based on how the individual wants their lifestyle to be after their career. The sooner they begin saving and investing their money, the more profound lifestyle they are bound to live. There is a saving plan called the 401(k) that lets employees have a percentage of their net pay withdrawn before taxes. This helps significantly if they are planning to retire earlier on in their lifetime because it can also lower the amount of taxes owed each take which essentially is more money in your pocket every paycheck. America as a whole downplays the significance of saving for retirement until they get of a certain age and they are too drained to get up for work and work a full shift as they would when they were of a younger age. Typically, when living in retirement you are free to travel and reach goals you were not able to achieve because life and work got in the way. Enjoying your retirement is the goal, not to make your retirement a burden to you or their
At the beginning, my research became about the retirement gap of the rich and poor. The rich where those that had riches handed down to them. The rich had a greater chance of obtaining a superior education and employment. The rich are able to put money away for full retirement. Comparatively the poor had a