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Author: Li, Jieyu Phyllis
Resulting in 2 citations.
1. Li, Jieyu Phyllis
Intended Retirement and Wealth Adequacy
Ph.D. Dissertation, The Ohio State University, 1996
Cohort(s): Older Men
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Benefits; Family Studies; Household Income; Life Cycle Research; Modeling; Modeling, Probit; Pensions; Retirees; Retirement/Retirement Planning; Savings; Social Security; Wealth

This study explores the extent of personal financial planning for retirement. A review of the economic consumption and savings theories indicates the Life Cycle Model provides a useful conceptual framework for this study. The model assumes that individuals smooth out their lifetime consumption patterns. Based on that premise, the study establishes three instruments. They are the actual wealth, expected wealth and the difference between the two measures. Actual wealth is the present values of the sum of the household wealth, Social Security wealth and pension wealth at the expected retirement date. Expected wealth is the present value of total wealth needed to replace the consumption level before retirement projected over an individual's life expectancy. The difference between actual wealth and expected wealth, as established in this study, measures an individual's financial adequacy for retirement. If actual wealth is greater than expected wealth, the individual is termed to have adequate retirement wealth, otherwise, inadequate. Data used for the analysis was the National Longitudinal Survey of Older Men's Cohorts. Missing data for Social Security and pension income were imputed using OLS and Tobit regression based on all observations. A total of 972 individuals were used for the final empirical analysis and Probit model was used. Based on the above construct, the study found that more than half of the individuals (54%) had inadequate retirement wealth. The extent of inadequacy is more severe for retirees than non-retirees. Individuals who had adequate retirement wealth were more likely to expect to retire around the age of 65 when full Social Security benefits are available, have more other wealth and are in good wealth. Pension was found to have the biggest positive effect on the probability of adequate retirement wealth, followed by stock ownership. Households with income less than or equal to $70,360 were more likely to have inadequate wealth than households with income more than $70,360.
Bibliography Citation
Li, Jieyu Phyllis. Intended Retirement and Wealth Adequacy. Ph.D. Dissertation, The Ohio State University, 1996.
2. Li, Jieyu Phyllis
Montalto, Catherine Phillips
Geistfeld, Loren V.
Determinants of Financial Adequacy for Retirement
Financial Counseling and Planning 7 (1996): 1-11.
Cohort(s): Older Men
Publisher: Association for Financial Counseling and Planning Education (U.S.) (AFCPE)
Keyword(s): Income; Life Cycle Research; Modeling; Retirement/Retirement Planning

Permission to reprint the abstract has not been received from the publisher.

Data from the National Longitudinal Survey of Older Men are used to examine factors associated with financial adequacy for retirement. Bivariate and multivariate analyses show that being white, a longer planning horizon, planning to retire at age 65 or later, and owning assets are positively associated with the accumulation of financial resources adequate to maintain the preretirement level of consumption throughout the retirement years The importance of planned retirement age to financial adequacy for retirement is confirmed.
Bibliography Citation
Li, Jieyu Phyllis, Catherine Phillips Montalto and Loren V. Geistfeld. "Determinants of Financial Adequacy for Retirement." Financial Counseling and Planning 7 (1996): 1-11.