Pension Policy Literacy and Retirement Expectations: A Cross-Country Survey Experiment

Objectives This study reports the findings of the first cross-national survey experiment on the effects of information on the expected retirement age. Given the drawbacks of unrealistic retirement expectations, the study examines the impacts of nonpartisan information about future demographic aging and forecasted pension benefit levels. Methods An online survey experiment was conducted in the US, Germany and Spain in 2018 using an internet access panel. We assigned respondents to two random treatments: one citing the change in the projected share of the population older than 65 years (demographic treatment) and another citing the projected change in pension replacement rates (benefits treatment), both for 2015 to 2040. Treatment effects on the expected retirement age are reported. Results The benefits treatment has a strong influence on retirement expectations. In the US, respondents informed of the expected decline in pension replacement rates expect to retire two years later than respondents not informed of the decline. In Spain, this treatment leads to an approximately 9-month postponement of expected retirement, while no significant effect is found in Germany. In addition, the demographic treatment does not affect retirement expectations in the countries studied. Respondents in all countries informed of future population aging do not show different expected retirement ages than respondents not given this information. Discussion People’s retirement expectations are sensitive to information on future changes in pension generosity but not to information on population aging. The results suggest information campaigns focused on declining pension replacement rates may help extend working lives.

Do expectations for post-retirement family and government support crowd out pre-retirement savings? Insights from the working-age population in Thailand

Based on nationally representative data (N = 8,901), this study investigates the extent to which expectations for intra-family transfers and government assistance in old age impact the probability of saving for retirement among working-age individuals in Thailand. Results show that expectations for financial non-self-reliance and expectations that family support would constitute the most important source of old-age financial security reduce the probability that working-age individuals would save for retirement. Expectations for government support have no impact on average. Given that filial piety is weakening in Thailand, this study suggests that the government encourage pre-retirement savings more strongly.

Core Self-Evaluations Affecting Retirement-Related Outcomes

This study addressed a gap in the literature by examining the role of core self-evaluations as a predictor of retirement preparation (i.e., attitudes, expectations, and goals), compared to other important aspects such as demographic, financial, health, and work-related variables. Based on the resource-based dynamic model for retirement adjustment and the core self-evaluations theory, the present study showed that core self-evaluations significantly and positively affected the social component of retirement adjustment (H1), the retirement expectations of new beginning (H2), the retirement expectations of continuity (H3), and retirement goals (H4). Additionally, core-self evaluations negatively affected the retirement expectations of imposed disruption (H5). All the analyses were controlled for age, gender, perceived health, financial situation, job centrality, and expected retirement age. In conclusion, core self-evaluations are valuable and supportive to workers across the work lifespan, and for dealing with the retirement preparation.

The effects of job characteristics on retirement

Along with data about actual, desired, and anticipated job characteristics, this paper uses a novel data element, the subjective conditional probability of working at age 70, to estimate the causal effects of job characteristics on retirement in the United States. Having flexible work hours is the most consistent predictor of retirement preferences and expectations: if all current workers had flexible hours, the fraction working at age 70 would be 0.322, but it would be just 0.172 if none had this option. Job stress, physical, and cognitive job demands, the option to telecommute, and commuting times were additional predictors of retirement expectations.

CAREGIVING AND PREPARATION FOR RETIREMENT

Saving for retirement should begin with the first job, but preparation with respect to determining a specific retirement age and plans for post-retirement life, generally occurs closer to the retirement date. However, among those who provide care for family or close friends who are elderly and/or have disabilities, retirement preparation may take a back seat to more pressing current concerns. While we know quite a lot about patterns of saving for retirement and the factors that influence those patterns, we know little about retirement expectations and patterns of thinking about and planning for the broader retirement experience, particularly among caregivers. This paper uses data from the 2008-2016 rounds of the nationally-representative 1979 National Longitudinal Survey of Youth to examine retirement expectations and five areas of retirement preparation (reading, using a computer app, consulting a financial planner, calculating income, or attending meetings) among employed adults (ages 51-59 in 2016) who are or are not providing care for someone in or out of their household. Longitudinal analysis finds significantly lower retirement preparation among adults caring for someone inside versus outside the household, as well as significantly lower preparation activities among female versus male caregivers. Caregiving influences employment and, in turn, the types of retirement accounts held by men and women. Although caregiving is associated with decreased retirement savings among both men and women who have pension accounts, retirement preparation activities in 2008 and 2012 are associated with higher retirement savings in 2016.

Diagnosis of educational preparation for retirement: expectations and knowledge of Mexican workers

Introduction: Without proper preparation, 1 in 3 workers who are about to retire face adaptation problems while their levels of stress and anxiety increase.Objective: To diagnose the educational preparation needs for retirement by classifying expectations and knowledge of Mexican workers about to retire.Materials y methods: Qualitative descriptive study in which an initial comprehensive evaluation was used. 92 workers over 55 years of age and about to retire were included. Data were collected in a metacognitive format that encourages self-assessment and self-reflection. A thematic analysis was carried out.Results: Six types of knowledge were identified: 1) no knowledge; 2) basic knowledge; 3) indifferent knowledge (workers who knew little about retirement or were not interested in learning about it); 4) knowledge about labor rights; 5) positive knowledge; and 6) negative knowledge. Expectations were classified into five types: a) wanting to know everything, b) wanting to know about income, c) wanting to know about rights and obligations, d) wanting to stay active, and e) wanting to prepare for retirement.Conclusion: The metacognitive tool helped workers who are close to retirement to decipher, reflect and socialize their knowledge and expectations about retirement, and to raise awareness about their upcoming change of lifestyle. Companies should prepare employees who are going to retire through sensitizing conferences, taking care first of the need to know about the procedures and paperwork. Relatives and colleagues should be involved in future interventions, given that retirement has a collective dimension that needs to be addressed.