This paper describes a computer model for running individual retirement portfolios over different historical periods to see the actual retirement incomes they would have provided. Such an approach is much more sophisticated and insightful than simply applying an annuity formula to retirement assets and assuming a real arbitrary rate of return.

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In the wake of recent events, especially the Great Recession of 2007-2009, affecting the economy, resulting in job losses, personal financial distress, and gloomy perceptions of their future well-being, many Americans are concerned about their financial quality of life in retirement. The media is replete with a plethora of advertisements for retirement planning and financial products for an aging population. By 2030, nearly 20 percent of the population of the United States will be 65 or older. This case study was an examination of a group of retirees who are financially secure enough to reside in retirement communities that require prequalification of assets. The study will serve to inform people on the path to retirement of what those who have been successful actually did so that those in the pipeline may take into consideration their actions and avoid acts of commission or omission that might impede or destroy their chances of reaching a financially secure retirement. The study results showed that not only were the participants financially literate, they were planners. It also became apparent that financial literacy was acquired over time and that becoming financially literate and planning for retirement were dynamic processes that were not discrete. Another finding was that although financial literacy may have a positive impact on success in achieving a financially secure retirement, other factors such as world events, self-control, and luck could affect the realization of a retirement that is financially secure. The first-hand qualitative information gathered in the course of this study will enrich comprehension of the scope of the issues of financial literacy and retirement in America and perhaps form the basis of additional academic research. Finally, the conclusions of this study are significant not only for individual prospective retirees, but also for educators, financial industry professionals, and policy-makers as they craft educational programs, construct financial portfolios, and formulate legislation to help ensure the financial security of an ever-growing population of elders. / Ph. D.

Some people experience cumulative advantages or disadvantages at birth and during their lifespan that determine future life course outcomes. Health disparities and systemic inequity can define a negative trajectory for some minority and underserved communities. Without intervention, such inequity can spiral and eventually affect more and more areas of an older person's life, much like cumulative disadvantages. This research proposes that older adults can improve their situation through targeted support factors that systematically improve lifespan areas. Eventually, more adults can experience the cumulative advantage effect as life progresses. The dissertation consists of a systematic literature review to evaluate literature that isolates degree-level education as a predictor of successful retirement transition planning. This foundational information is used as a basis for identifying constructs in two follow-on studies of the longitudinal National Health and Aging Trends Study (NHATS) Wave 9 public dataset. We explore factors supporting readiness for retirement and retirement transition in later life using data of older adults aged 65+. Multiple regression, exploratory factor analysis, and partial least squares structural equation modeling (PLS-SEM) are used to gain a multi-angle view. The results showed that degree-level education influences higher salaries, improved healthcare access, and financial literacy. In addition, old age has an increased risk of physical pain and chronic diseases that affect activities of daily living and independence in retirement, regardless of financial resources. Declining health can lead to social isolation and depression for older adults.

Approved for public release, distribution is unlimited / The defined benefit (DB) pension system that provides retirement security to 44.5 million Americans faces significant challenges. At the end of 2003, the system was underfunded by $350 billion, there were 82,696 fewer plans then during the system peak (in 1985), and the Pension Benefit Guaranty Corporation (PBGC) responsible for ensuring retirees receive their retirement benefits even after a plan terminates, reported a deficit of $11.49 billion. This thesis examines the challenges facing the DB pension plan system, beginning with an overview of the DB plan system, a review of the different plan types, the benefits received, and funding rules. Next, examining the PBGC, its purpose, its organization, and the role that it plays in the DB pension system. Followed by an identification of the challenges facing the pension plan system, and corporate America's frustrations with the system. Finally, the thesis presents some recent reform proposals, and provides corporate America's response to them. A changing workforce demanding leaner retirement options, plans that allow multiple career changes, provide beneficiaries with lump sum benefits, provide early vesting characteristics, and are easily understood, is challenging the future of the DB plan system. To survive the DB plan system must continue to change. / Lieutenant, United States Navy

This study was exploratory in nature, with the purpose of examining the relationships between working Baby Boomers’ knowledge of retirement health benefits and health costs and actions they have taken to prepare for retirement. An online survey was completed by 209 Baby Boomers who are employed by three city governments in the Dallas-Fort Worth Metroplex. The research showed that health benefits knowledge does not predict retirement preparation but that Baby Boomers who demonstrate higher levels of knowledge-seeking behavior are more likely to undertake retirement preparation, specifically by purchasing an annuity. Among public sector working Baby Boomers, retirement preparation activities are found to be minimal. Age was found to predict knowledge-seeking behavior, in that older vs. younger Baby Boomers are more likely to engage in knowledge-seeking behavior related to retirement preparation. Current knowledge about health benefits does not predict retirement preparation.

The thesis is concerned with the problem of sustainable spending towards the end of the human life cycle, which is a substantial quantitative problem in the pension framework. We gradually build a model, which coherently links the three key factors of retirement planning: uncertain length of human life, uncertain investment returns and spending rates. Within the framework of our intuitive model, we apply the method of moment matching to derive an approximation for the probability of individual's retirement ruin. The accuracy of presented approximation is analyzed via extensive Monte Carlo simulations. A numerical case study using Czech data is provided, including calculated values for the probability of ruin and maximal sustainable spending rate under various combinations of wealth-to-spending ratios and investment portfolio characteristics.

Doctor of Philosophy / Department of Family Studies and Human Services / Sonya L. Britt / Maurice M. MacDonald / This dissertation, consisting of three studies, explores the influence of self-esteem upon retirement planning behaviors. Data for all three essays was obtained from the National Longitudinal Survey of Youth 1979 cohort (NLSY79). A Theory of Self-Esteem (Cast & Burke, 2002) served as a theoretical framework for each study. The first essay examined the association between information search behaviors and retirement planning actions upon two dimensions of self-esteem, consisting of efficacy and worth. Both information search behaviors and retirement planning actions were found to be associated with both dimensions. Attained levels of education and the masculine gender were also found to be significantly associated with each self-esteem dimension. Essay two explored creditworthiness as part of the identity self-verification (Stryker, 1980) and self-esteem buffer mechanism, and its association with pre-retirement planning behaviors. Higher levels of self-esteem, attained level of education, net worth, and net income were all found to be associated with individuals who were likely to engage in one or more preretirement planning behavior. Creditworthy practices, however, were not found to be associated with pre-retirement planning behaviors in this study. Essay three postulated that respondents who possessed a composite psychosocial profile consisting of Rosenberg’s self-esteem scale (Rosenberg, 1965), Pearlin’s mastery scale (Pearlin & Schooler, 1978), and Rotter’s locus of control scale (Rotter, 1966) would be associated with engaging in one or more retirement planning behavior. Results showed that a composite psychosocial profile is associated with individuals likely to engage in one or more retirement planning behaviors. Attained levels of education, net worth, net income, and age were found to be associated with individuals likely to engage in one or more retirement planning behaviors. Results of these three studies demonstrate that an association exists between self-esteem and retirement planning behaviors. This study offers the first exploration of A Theory of Self-Esteem (Cast & Burke, 2002) in a consumer finance context since the theory’s establishment ten years ago. These findings are important to academicians, financial planners, financial counselors, financial therapists, and policymakers in developing future research, strategies for financial success, and in the formulation of public policy to promote personal financial well-being.

Stigande förväntade livslängder har tillsammans med sjunkande födelsetal bidragit till en omvandling av pensionssystemet i ett antal länder. I sin tur har det medfört en större individhantering och därmed större krav på den enskilda individens kompetens. Tidigare studier visar att finansiell förmåga tenderar att vara låg i välutvecklade länder, ett positivt samband mellan individens finansiella förmåga och pensionsplanering har också urskilts. Ur detta perspektiv kan den ökade individhanteringen ses oroväckande och skapa ogynnsamma förutsättningar för goda ekonomiska utfall både för samhället och den enskilda individen. De tidigare studierna behandlar främst nivåerna av finansiell förmåga och pensionsplanering samt hur de samvarierar i tvärsnitt. För att skapa en bättre förståelse för sambandet mellan finansiell förmåga och pensionsplanering ämnar denna uppsats att studera sambandet över tid. Uppsatsen baseras på ett datamaterial från Norge, där en förändring i pensionssystemet implementerats 2011. Sambandet mellan individens finansiella förmåga och pensionsplanering studeras med regressionsanalyser. Resultatet från regressionsanalyserna tyder på att en förändring i den finansiella förmågan inte kommer leda till en förändring av individens pensionsplanering. Uppsatsens resultat ger inte stöd för ett kausalt samband mellan finansiell förmåga och pensionsplanering i Norge. De tidigare studierna i andra länder har fått stöd för ett kausalt samband. Om sambandet mellan finansiell förmåga och pensionsplanering är detsamma eller liknande i ett internationellt perspektiv väcker uppsatsens resultat ytterligare frågor kring hur sambandet och mekanismen bakom finansiell förmåga och pensionsplanering verkligen ser ut. Om en önskan att öka individers pensionsplanering finns ges inga tydliga svar på vilka åtgärder som är lämpliga och genererar resultat. / Rising life expectancies together with declining birth rates have contributed to a transformation of the pension system in several countries. In turn, the transformation has resulted in a greater individual management of the pensions and thus greater demands on the individual’s skills. Previous researches have shown that financial literacy tends to be low in well-developed countries, they have also distinguished a positive relationship between an individual’s financial literacy and retirement planning. From this point of view, the increased individual management could cause concerns and create unfavorable conditions for positive economic outcomes for the society as well as the individual. The previous researches have mainly dealt with the levels of financial literacy and retirement planning and how they co-vary in cross section. The thesis intends to study the relationship between financial literacy and retirement planning over time, to achieve a better understanding of the relationship. The thesis is based on a dataset from Norway, where a change in the pension system was implemented in 2011. The relationship between the individual's financial literacy and retirement planning is examined with regression analyzes. The results from the regression analyzes indicate that a change in the individual’s financial literacy do not have an impact on the retirement planning. The thesis results do not provide support for a causal relationship between financial literacy and retirement planning in Norway. The previous researches in other countries do provide support for a causal relationship. If the relationship between financial literacy and retirement planning is the same or similar in an international point of view, the results raises further questions about how the relationship appears and how the mechanism works. If there is a desire to enhance individuals' retirement planning the thesis result give no simple answers to what actions that are appropriate and generate results.

Thesis advisor: Christina Matz / Retirement is a significant transition in an individual’s life course. More and more people are working past traditional retirement ages. Planning before retirement has been shown to relate to a number of positive outcomes and lead to a smoother transition to a retired life, such as more retirement savings, better retirement satisfaction, better social life, health, and mental health. However, most of the studies about retirement to date have focused on the impact of health and wealth in preparing for a successful retirement. This dissertation examines three issues related to retirement planning and expectations: (1) How do work and family relationships relate to having a plan to reduce or stop work and expected retirement timing in late life, and are there gender and occupational differences in these relationships? (2) How do workplace experiences relate to expectations to retire earlier or later than what is normative in different occupations? (3) Does sense of control explain the relationship between involuntary retirement and retirement satisfaction? To answer the three questions, the author adopts the role theory, the age norm theory, and the theory of self-efficacy to explain the background and findings. The data for this dissertation comes from the Health and Retirement Study (HRS), a nationally representative dataset that captures the information about the health and retirement issues among adults over age 50 in the U.S. This proposed study uses pooled cross-sectional data from waves 2012 and 2014. Ordinary least squares (OLS) regression and logistic regression were used to examine the effect of work and family relationships and the plans/retirement timing of pre-retirees. Multinomial logistic regression was used to examine workplace factors that contribute to the non-normative retirement age expectations. Mediation analysis was used to study how personal mastery, perceived constraints, and domain-specific control mediates the relationship between involuntary retirement and retirement satisfaction. / Thesis (PhD) — Boston College, 2019. / Submitted to: Boston College. Graduate School of Social Work. / Discipline: Social Work.