Research is proposed to examine the psychomotivational determinants of financial planning for retirement; Over the next four decades an unprecedented number of Americans will enter retirement. For many, however, this period of life will represent a decidedly negative experience involving the eventual onset of poverty due, in part, to insufficient pre-retirement savings practices. Unfortunately, little in the way of basic psychological research has been conducted that focuses on why some individuals save for retirement, while others do not. The proposed study will explore the extent to which personality factors influence savings participation. Two personality variables-financial risk tolerance (RT) and future time perspective (FTP)-will serve as predictors of pre-retirement savings activity. Participants will be 280 working adults, 25-45 years of age, sampled from across the United States. Respondents will complete a 30-minute survey that will be mailed to their homes. The theoretical goal of the research will be to examine the relative strength of influence future orientation and risk tolerance have on savings practices. This will be accomplished with the use of hierarchical regression analysis techniques. A second more applied goal is to examine the risk tolerance and future orientation characteristics of three different types of pre-retirees: conscientious planners, moderate planners, and avoidant planners (segments of workers that have been identified in previous work by the principal investigator). This goal will be accomplished with the use of cluster analysis techniques. Understanding how members of these subgroups differ in terms of their risk tolerance and future orientation levels should improve our ability to identify and intervene among individuals at risk for poverty during late life. The proposed one-year project represents an achievable undertaking that will help advance research and theory in the area of retirement planning.
