Individual career planning: Managerial help for subordinates

Personal career expectations have risen, and more individuals are showing initiative and demanding career opportunities. Turnover is increasing, and white-collar unions have been suggested. The author suggests that managers provide adequate support and guidance for individual career planning through human resource planning and development. Career planning begins with choices concerning occupation and organization, the job assignment, performance and development, and, ultimately, retirement. Management supports these choices through the way it attracts, recruits, and orients new talent; matches individual interests and talents with opportunities; helps individuals perform effectively and develop their capabilities; and helps individuals prepare for a satisfying, secure retirement. The author offers several guidelines for influencing career behavior, the core of the human resource management process.     

Retirement concerns and planning of cooperative members: a study in the Dutch healthcare sector

Retirement planning is a key component in achieving goals and fulfilling expectations. Although several socioeconomic and psychological factors associated with retirement planning have been reported in the literature, little is known about the influence that specific retirement-related issues have on retirement planning. We examine the influence of five concerns—the individual’s financial situation, living situation, care provision, health condition, and loneliness—on retirement planning. In addition, we investigate the influence of these concerns on individuals’ perceptions of their ideal post-retirement situations in terms of financial standards. Our dataset is derived from a 2010 web-based survey of the care and well-being sector in the Netherlands.     

Marketing retirement—or staying on the job

Financial packages provide the most common incentive to meet the legal requirement that retirement be voluntary. However, managers have other tools to encourage retirement or encourage staying on the job—within legal constraints and consistent with current health insurance changes that may make pre-65 retirement more desirable. In using these tools, managers must consider demographic realities that offer a large cohort available to replace retirees. To assist managers, a qualitative study among human resource experts probed how companies decide between encouraging retirement and encouraging staying on the job and also how each is accomplished to maintain a workforce best matched to job requirements. Suggestions for marketing retirement include starting early to encourage saving so that employees can afford to retire and improving the retirement ‘product’ by flexible alternatives to full-time work, including self-employment. Suggestions for keeping employees on the job include tailoring schedules and rewards to the preferences and needs of individuals who might otherwise retire.     

The Roles of Gender and Marital Status on Risky Asset Allocation Decisions

We analyze data on asset allocations in individual retirement accounts to examine the roles of marital status and gender on investment decisions. We utilize data from two birth cohorts to understand the relationship over a wide age range. We find that, in their 30s and early 40s, men are more likely to hold a majority of their funds in stocks in individual retirement accounts compared to women. The gender difference disappears around retirement age; however, a significant difference by marital status emerges in that age group. Divorced and widowed individuals are less likely to hold a majority of their funds in stocks compared to married individuals in their 60s. While there exists a positive gap in stock holdings between married men and married women in their 30s, the gender gap is nonexistent among older individuals. Using paired data on stock holdings in the older birth cohort, we show that husbands' and wives' asset allocations in individual retirement accounts are strongly correlated, coinciding with the lack of a gender gap in stock holdings among older couples.     

Public Pension Reform in Europe: Policies,Prospects and Evaluation

This paper describes the demographic and economic factors underlying the reform of public pension programmes in Europe. It examines the policy response, both at the Europe‐wide level and within individual European countries. Several programme reform strategies that have been implemented are evaluated. These strategies are the greater pre‐funding of public pensions and expanded second‐tier private pension components, ‘parametric’ reforms to existing programmes, and the development of formula‐driven ‘actuarially fair’ public programmes. Efforts to provide greater incentives for individuals to postpone retirement are also discussed.     

Will perceived economic deficits affect housing decisions during retirement?

The study ascertains a causal model of factors that influence preretirees perceived difficulty in housing adjustment during retirement. Further, the influence of perceived economic deficits and an economic adjustment decision for preretirees during retirement are investigated. Path analysis results indicate that the perceived difficulty in moving to a more suitable home for retirement is influenced by tenure, setting up a retirement investment plan, and the perceived difficulty in selling one's home to have money for retirement expenses. The perceived difficulty in selling one's home to have money for retirement expenses is influenced by age and tenure. Age, tenure, education and income were influential in predicting the number of sources of retirement income; age, education and income were predictors of setting up of a retirement investment plan.     

The Road Ahead: The Graying of America and its Implications for Finance and the Economy

The population of the United States is aging, putting unsustainable strains on Social Security, Medicare, and Medicaid. These programs must be reformed, but there will also be increased pressure on individuals to save more and work longer if they are to enjoy a healthy retirement. Moreover, individuals must become much more sophisticated about the financial aspects of retirement in order to make wise choices. That said, the United States has many good options for successfully coping with the challenges of aging, but it is imperative that we act now.     

Das Rentenpaket 2014 — eine ökonomische Beurteilung

The 2014 pension reform has three main components. First disability pensions have been increased by about two earnings points, an average monthly gain of 40 euros. In addition low wages in the four years preceding disability-related retirement will now be disregarded. However, since these new rules only apply to retirement after July 2014 they fail to fight poverty among current disability-related retirees. Second an additional credit for all births before 1992 (“mothers’ pension”) is extremely costly and unnecessary. Poverty prevention is weak due to a strict income test in the welfare system for the elderly. Third early retirement at age 63 without actuarial adjustment has been reintroduced This is a costly measure with negative effects on both equality and efficiency. The additional child credit and early retirement provisions reduce the financial and social sustainability of the German public pension system.     

Presentation Format and Financial Literacy: Accessibility and Assessability of Retirement Savings Statements

While increased financial literacy may improve individual retirement savings decisions, modifying the placement of key information in retirement savings statements can produce further improvements. We examined the extent to which placement of information and financial literacy affected the accessibility of information for individuals and assisted in their financial decision making. We also disaggregated financial literacy into numeracy and knowledge to identify key drivers. Using an experimental design, we find the increased salience resulting from modifying the presentation format improved participants' ability to locate important information (accessibility) and to evaluate the relative performance of funds (assessability). However, the incremental benefits of placement are only found for individuals with moderate numeracy skills. We conclude there is value accruing from financial literacy programs as advocated by regulators, but suggest additional benefits may be reaped from focusing on numeracy skills and from using presentation formats that improve information accessibility and assessability.     

Immigrants,Financial Knowledge,and Financial Behavior

This research seeks to identify gaps in financial knowledge and behaviors between immigrants to Canada and individuals who are born in Canada. The research aims to evaluate to what extent immigrants involve themselves in financial planning and avoid harmful financial behaviors. Employing the Canadian Financial Capability Survey (2009), the findings of the study suggest that immigrants are less likely to show high levels of financial knowledge compared to born citizens. The knowledge gap between immigrants and born citizens narrows as an individual resides longer in Canada. In addition, immigrants are less likely to prepare themselves financially for their retirement or to have long-term investments. The findings provide a basis for addressing the implications of weak financial knowledge.     

Rentenreformen — die internationale Perspektive

This article examines recent pension reforms in OECD countries. All countries are facing the challenge of designing both financially and socially sustainable pension policies in a context of weak economic growth, low financial returns and ageing populations. In some cases, countries have been accelerating the pace of pension reform, bringing forward changes in the rules and parameters of their pension systems. Common features include, for example, increases in retirement ages, closure of early retirement avenues, changes in benefit indexation, stronger links in the system to increasing life expectancy and greater incentives for working longer. At the same time, many countries have improved the adequacy of retirement income provision, in particular by targeting benefits more towards the most vulnerable elderly.     

A Framework for Setting Retirement Savings Goals

The purpose of this paper is to develop a framework for calculating savings needed to meet retirement goals under a variety of alternative assumptions about the economic and institutional environment. A “base case” that incorporates a zero real rate of interest serves as a starting point; next, differences resulting from a positive interest rate are examined. The analysis is further modified to take into account the effects of inflation, the role of Individual Retirement Accounts (IRAs), and possible future changes in tax laws. Throughout, the goal is to evaluate how best to plan for a smooth, regular consumption level before and after retirement and to adjust savings programs for changes in one's situation or expectations. The framework provided herein is expected to be useful to consumer educators and financial counselors concerned with helping individuals to meet their retirement goals.     

The Relationship between Retirement Wealth and Householders' Lifetime Personal Financial and Investing Behaviors

While previous research indicates wide wealth dispersion at retirement within households with similar lifetime incomes, there have been few attempts to identify personal financial behaviors associated with retirement wealth in households matched for lifetime income. Householders with similar demographics and lifetime income but differing markedly in net worth near retirement were surveyed in terms of personal financial behaviors undertaken during their lifetime. Results revealed key differences between householders with low and high retirement wealth in their financial behaviors and how these were acquired.     

Financing Retirement: The Private Sector

Since 1980, there has been a rapid shift from employerbased, defined benefit pensions to employee-controlled personal retirement accounts. This paper documents the shift and explores the conventional wisdom that this shift increases risk for retirees and will result in lower accumulation of retirement assets. In particular, it focuses on personal retirement accounts and considers the options available for retirees to contain risk and assess the likely outcomes over alternative options, including life cycle allocations. It concludes that personal retirement accounts are likely to lead to higher retirement accumulations that are also less risky than would be the case under defined benefit plans. JEL Classification G23     

收入水平和收入风险对养老投资行为的影响——基于武汉市中心城区的调查数据

引导居民进行养老投资是缓解养老经济压力的重要途径之一,而影响养老投资的因素有很多。运用武汉市7个中心主城区753个居民的调查数据,以收入为切入点,从收入水平和收入风险两个角度考察其对居民养老投资行为的影响。研究结果显示,收入水平越高、收入风险越大,居民参与养老投资的可能性越大;收入水平与收入风险的边际效应呈倒U型,其中收入水平在6~10万的居民,养老投资的边际效应最大;异质性分析显示,女性、受教育程度较高、健康状况较差以及年龄较大的居民,收入水平和收入风险对养老投资的促进作用更大。通过用家庭收入水平代替个人收入水平、考虑风险态度与金融能力因素对养老投资的影响等方法进行稳健性检验,都证明了上述结果的可靠性。该结果不仅可以解释武汉市城镇居民养老投资的现状,而且对促进养老金融市场的发展与相关政策的制定也具有一定的启发和现实指导意义。     

Determinants of retirement planning behaviour and differences by age

This paper presents the results of an investigation into the determinants of retirement planning behaviour and differences among three age groups: 21‐ to 39‐year‐olds, 40‐ to 59‐year‐olds and those aged 60 years and older. A national survey of 911 individuals from households with incomes of $75 000 or greater was conducted in the US. The significance of socio‐demographic variables, the ability to recover from loss, behavioural tendencies and perceived or actual personal control were investigated; together with their role in the prediction of maximization of retirement contributions and ownership in the personal individual retirement account (IRA) or Keogh accounts. The results identified several significant variables in the prediction of ownership in a personal IRA or Keogh, including age, sources of financial information, being an early investor and investor activity. The results also identified several significant variables in the prediction of the maximization of retirement contributions, including employment, income, savings activity, ex ante research, review of investment performance, early investor, investor activity, such as planning for financial future, setting up automatic deposits and reviewing financial information in the mail.     

Does Calculating Retirement Needs Boost Retirement Savings?

Calculating retirement savings needs is often viewed as an essential first step in retirement planning. Yet, little empirical evidence exists to support the value of this activity. This case study examines the connection between calculating retirement savings needs and retirement savings through analysis of an online survey of benefits‐eligible employees at a large Mountain West university. Controlling for a variety of possible covariates, and using an instrumental variable approach, the case study shows that having estimated a retirement savings target increases self‐reported retirement savings. The results provide support for financial educators and planners in their efforts to encourage people to estimate their retirement needs early in the retirement planning process.     

The Role and Influence of External Information Sources in Alternative Housing Decisions by Elderly Consumers:

This paper explores the use and evaluation of external information sources in consumer decision-making. Information sources were evaluated by respondents according to six possible applications for the information-based on information use and hierarchical levels in the decision process. The research setting is nonprofit retirement apartments and the subjects are recent movers to those apartments. The empirical findings of this study have marketing implications for marketers of nonprofit retirement housing and social service agencies serving the elderly. They also suggest further research for other nonprofit marketers.     

Economic Implications of Demographic Change

The United States is in the midst of a demographic transition toward a population age structure with a higher fraction of elderly individuals. The associated growth of transfer programs for which the elderly represent most of the beneficiaries, such as Social Security and Medicare, will place upward pressure on the size of the public sector. The rising number of individuals who are beyond the traditional age of retirement, relative to the number of individuals of traditional working age, will create incentives for longer working lives and for greater investments in human capital by younger workers. Changing age structure may also affect rates of return available to savers, although these effects are likely to be modest.     

Work after retirement: intentions,realities and implications

The economic security of families in retirement is a function of levels of inflation and how well families can adjust their retirement incomes to meet inflation. One way of buffering the effects of inflation is to work part-time after retirement from one's main job. Studies of retired people, however, have indicated that levels of post-retirement work are low. This study of a near-retirement aged cohort offered a special early retirement incentive indicates that intentions to work after retirement from their main job are consistent with previous retired cohorts' work levels. On average, respondents anticipated working less than 3·5 h per week or less than 10 weeks per year. Major factors affecting the hours or weeks of work desired were age, life expectancy, perceived retirement income adequacy, marital status, health, sex, area of residence and education.