Pre-Retirement Attitudes and Financial Preparedness: A Cross-Cultural and Gender Analysis

Abstract

The purpose of this research was to examine the differences between males and females across three different cultures in terms of financial resources for retirement years and pre-retirement attitudes and intentions. The study was carried out in three separate endeavors in one primary study and two replicatons. There was one study of white professional workers with a replication done on black professional workers and finally a replication study carried out on the island of Puerto Rico. A total of 913 persons were studied with equal proportions of female and males. Findings suggest a lack of financial readiness, especially among puertoricans and women. Yet the group most ably prepared (white professionals) anticipated the least enjoyment of retirement. The need for pre-retirement planning, especially for women and ethic minorities is clear. Moreover, the documen- tation of the inequities between whites, blacks, and puertoricans should provide further impetus for the social welfare institutions to confront this dis- crepancy. With the rise in life expectancy we can antici- pate a corresponding increase in the number of years that one may spend being retired. Currently, retire- ment has been the subject of heated debate in regards to the social security system and mandatory retire ment. At the same time, labor force participation rates have declined sharply for those over age 65.1 113 While most people probably consider 65 to be the "age for retirement," the actual age is earlier for many workers, with a steady increase in the proportion of workers leaving the labor force from age 55 on. 2 A 65 year old male can now look forward to 14 more years, while a 65 year old female can anticipate another 18 years. 3 Thus the term, "early retire- ment" now has even more salience. Although retirement encompasses many psychosocial changes and new defini- tions of the self, the pattern of financial prepared- ness may be one of the most important influencing factors affecting early retirement. 4 The need for pre-retirement planning has been clearly linked to satisfaction in the retirement years.5 The consequences of inadequate and incom- plete retirement preparation most certainly means, at worst, years of poverty level existence, and at best, surviving from month to month and financial crisis to financial crisis. In general, preparation for retirement is minimal; it is unorganized beyond the immediate, personal level.6