Retirement Financial Planing and Life Satisfaction

Abstract

Abstract#8232; Retirement has been considered as a major transition in one’s life. Financial security in retirement is a major concern for many Americans. Evidence has shown that being financially#8232;prepared for retirement could has a significant, positive impact on one’s life satisfaction. Employing data from the 2012 and 2018 National Financial Capability Study (N=1023), this#8232;study analyzes the relationship between participants’ retirement planning in 2012 and their financial satisfaction in 2018. An Ordinary Least Squares regression is used in the current study.#8232;This study found relatively low retirement preparedness levels (retirement planning, retirement#8232;saving, retirement plan: employer-based or individually held, investment) among the participants#8232;in 2012. Based on the descriptive results, adults closest to retirement (ages 55 to 64) are more#8232;likely to be planning compared to the other groups, as are adults who were married, highly#8232;educated, males, and white. According to the liner regression results, this study found that adults#8232;who had a retirement savings goal, had a retirement plan (employer- based or individually held),#8232;made regular contributions to retirement plans, and owned investments in 2012 are more likely#8232;to be satisfied with their personal financial condition in 2018. As expected, individuals with#8232;higher incomes, larger net worth, and those who are older are significantly more likely to be#8232;financial satisfied. However, even after controlling for these variables, results show that planning#8232;does indeed impact the level of financial satisfaction. Our findings highlight the importance of#8232;policies and programs to support Americans with retirement planning.