Women's Retirement Income Satisfaction and Saving Behaviors

Retirement saving research frequently has investigated the differences between working men and working women and primarily focused on the near retirement and retirement years. There is limited research targeting young to old working-age women including those who do not work for pay and are unemployed. The purpose of this study was to examine what factors affect non-retired working-age (25 years and older) women's retirement saving behaviors, retirement savings, and retirement income satisfaction. To implement the study, a research framework was developed based on Deacon and Firebaugh's Family Resource Management Model. The research framework for this study consisted of three major sections: (a) input (demographics, saving motives, retirement saving involvement level, retirement information seeking, current financial assets and debts, and future expectations), (b) throughput (retirement saving behaviors such as calculating needed retirement savings, being a retirement saver, starting saving for retirement age, and being a regular retirement saver), and (c) output (the objective retirement savings and the subjective retirement income satisfaction). An online survey instrument was developed to obtain data for the study. Two pilot tests were conducted to confirm the validity and reliability of the instrument. Data for this study were collected from a national population between May 25, 2012 and May 30, 2012 with 591 valid responses. Several statistical methods were employed: descriptive statistics, one-way between-groups analysis of variance (ANOVA), direct logistic regression, and standard multiple regression. From the results of the study, only about one-third of the women (31.8%) reported they expect to get the full amount of Social Security retirement income that today's retirees get. However, around 60% of the women only save less than $25,000 or none in employer-provided retirement accounts or in personal investments and savings. There is an un-addressed gap between the cognition of the need to save for retirement and real saving action. A regular retirement saver is more likely to save more in employer-provided retirement accounts and to feel more satisfied with that retirement income. Yet, regular retirement savers have less savings in personal investments and savings, possibly because they believe their work investments will be sufficient or some women may make direct deposits to meet the annual limits of retirement plans. Other researchers have not reported this relationship. Those women who are more cognitively involved with saving for retirement are more likely to calculate needed retirement savings and to be a retirement saver, but they are less satisfied with retirement income from Social Security and from personal investments and savings. Satisfaction level is subjective; thus, those who expect to own more types of assets in retirement may have a higher satisfaction level with the expected income from both employer-sponsored retirement accounts and personal investments and savings. Generally, greater satisfaction with expected retirement income is associated with higher accumulation in retirement savings, and the female savers have much more retirement savings than non-savers. However, there is no difference in the retirement income satisfaction of savers and non-savers. These findings have implications for financial educators, counselors and advisors, researchers, employers, and policy makers. There are recommendations for women and future research.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Apparel, Housing, and Resource Management

Department dc:contributor.department

Apparel, Housing, and Resource Management

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

2013

Author dc:creator

• Hsu, Chungwen

Chair dc:contributor.committeechair

• Leech, Irene E.

Committee members dc:contributor.committeemember

• Fisher, Patricia J.
• Beamish, Julia O.
• Anong, Sophia Tambudzai

• Retirement Income Satisfaction
• Retirement Savings
• Retirement Saving Behavior
• Involvement Level
• Women

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Dc Identifier Other

vt_gsexam:67

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/49586