Connect * Empower * Impact


2019 AFCPE® Research and Training Symposium


AFCPE Pre-Symposium: Sunday, November 17 - Tuesday, November 19
AFCPE Symposium: Tuesday, November 19 - Thursday, November 21
Schedule Subject to Change

Thursday, November 15th, 2018
Category: Retirement
Theory of Planned Behavior and Retirement Preparation
The need for workers to prepare for retirement has been widely promoted, yet our understanding of workers' retirement preparation behavior remains sparse. This paper reports the findings of a study of non-retired workers utilizing the 2015 National Financial Capability Study and their intention to have any other retirement accounts (IRA, Keogh, myIRA) not through the employer. Utilizing the theory of planned behavior, the study reveals respondent's self-reported attitudes, subjective norms and perceived behavioral control account for a high proportion of the variance in the behavioral intention to calculate required retirement savings. In turn, the behavioral intention accounts for a high proportion of the variance in the behavior to have any other retirement accounts not through the employer. This study highlights the relevance of psychological constructs to an understanding of workers' retirement preparation behavior, and establishes a need to for financial counselors, advisors and other practitioners to understand the psychological determinants of retirement preparation behaviors.
Implications for Practitioners
:
We identified factors that measure attitude, subjective norms, and perceived behavioral control, that are predictors of the behavioral intention to calculate required retirement savings. Practitioners gain an understanding of the psychological determinants of this behavioral intention and use this knowledge to encourage consumers to calculate their required retirement savings. Findings from this study provide insight of how practitioners' role in workers' retirement preparation. The finding that both subjective and objective financial knowledge impact the behavioral intention and target behavior shows the importance of financial literacy in retirement planning and means practitioners must focus their efforts on improving workers' financial literacy.
*CFP Pre-Approved Session - 1 CEU