Douglas A. Hershey

Goal clarity and financial planning activities as determinants of retirement savings contributions.

Retirement counselors, financial service professionals, and retirement intervention specialists routinely emphasize the importance of developing clear goals for the future; however, few empirical studies have focused on the benefits of retirement goal setting. In the present study, the extent to which goal clarity and financial planning activities predict retirement savings practices was examined among 100 working adults. Path analysis techniques were used to test two competing models, both of which were designed to predict savings contributions. Findings provide support for the model in which retirement goal clarity is a significant predictor of planning practices, and planning, in turn, predicts savings tendencies. Two demographic variables—income and age—were also revealed to be important elements of the model, with income accounting for roughly half of the explained variance in savings contributions. The results of this study have implications for the development of age-based models of planning, as well as implications for retirement counselors and financial planners who advise workers on long-term saving strategies.

Mapping the Minds of Retirement Planners

This study explored the psychological mechanisms that underlie the retirement planning and saving tendencies of Dutch and American workers. Participants were 988 Dutch and 429 Americans, 25 to 64 years of age. Analyses were designed to (a) examine the extent to which structural variables were related to planning tendencies and (b) develop culture-specific path analysis models to identify the mechanisms that underlie perceived financial preparedness for retirement. Findings revealed striking differences across countries not only among structural variables predictive of key psychological and retirement planning constructs, but also in the robustness of the path models. These findings suggest policy analysts should take into account both individual and cultural differences in the psychological predispositions of workers when considering pension reforms that stress individual responsibility for planning and saving.

Aging and financial planning for retirement: Interdisciplinary influences viewed through a cross-cultural lens

Current theoretical models support the existence of interactions between the individual and socio-environmental forces when it comes to the formation and enactment of life plans (Friedman & Scholnick, 1997; Shanahan & Elder, 2002). In this investigation, we examine the social, economic, and psychological forces that impact financial planning for retirement. The collective force of these three broad sets of influences was examined from developmental and cross-cultural perspectives, among respondents from two countries with very different retirement financing systems. Participants were 419 American and 556 Dutch working adults, 25–64 years of age. Path analysis models were created to examine differences in planning associated with age and national origin. Compared to younger individuals, older respondents in both countries were more involved in nearly all aspects of the financial planning process. Differences across cultures were also observed in the social support mechanisms that underlie planning and the impact economic forces have on perceptions of saving adequacy. The discussion focuses on the value of developing interdisciplinary theoretical models of planning, and how such models can inform the development of savings-oriented intervention and public policy initiatives.

AN EXPERIMENTAL COMPARISON OF RETIREMENT PLANNING INTERVENTION SEMINARS

The need for effective financial planning interventions has recently increased, as members of the baby boom generation near retirement. In the present study, the efficacy of three different retirement seminars was evaluated one year following intervention. The retirement seminars focused on either (1) information about financial planning and investing, (2) financial goal-setting exercises, or (3)acombination of financial information and goal-setting exercises. Post-intervention goal clarity and planning and savings practices were compared across the three groups, as well as to individuals in a control condition who received a memory improvement seminar. Intervention had the strongest impact on those in the combined (information and goals) condition, and a moderate influence on the behavior of those who attended the information-only seminar. These findings suggest that the influence of information-based seminars (the most common form of motivational intervention) can be enhanced by the addition of a supplemental goal-setting module.

Age Differences in Performance Awareness on a Complex Financial Decision-Making Task

Individuals tend to be overconfident when making retrospective judgments about the quality of their decisions. However, few studies have focused on age differences in estimates of decision quality. In the present experiment performance estimates were provided by task-trained and untrained young and old individuals following completion of a series of complex financial decisions. Confidence levels were assessed by examining discrepancies between perceived and actual solution quality. Performance estimates of all 4 groups contained appreciable estimation error; however, no group showed a substantial directional bias toward underconfidence or overconfidence. Young trainees were significantly less confident in the quality of their decisions than young novices, but a comparable training effect was not found among older individuals. Ones knowledge of the task, prior decision-making experience, and level of self-esteem may combine to determine the accuracy of ones retrospective performance estimates.

The epidemiology of spirit possession in the aftermath of mass political violence in Mozambique

In this article we assess the prevalence rates of harmful spirit possession, different features of the spirits and of their hosts, the correlates of the spirit possession experience, health patterns and the sources of health care consulted by possessed individuals in a population sample of 941 adults (255 men, 686 women) in post-civil war Mozambique in 2003-2004. A combined quantitative-qualitative research design was used for data collection. A major study outcome is that the prevalence rates vary according to the severity of the possession as measured by the number of harmful spirits involved in the affliction. The prevalence rate of participants suffering from at least one spirit was 18.6 percent; among those individuals, 5.6 percent were suffering from possession by two or more spirits. A comparison between possessed and non-possessed individuals shows that certain types of spirit possession are a major cause of health impairment. We propose that knowledge of both local understandings of harmful spirit possession and the community prevalence of this kind of possession is a precondition for designing public health interventions that sensitively respond to the health needs of people afflicted by spirits.

Gender Differences in Factors that Influence Time Spent Planning for Retirement

ABSTRACT Retirement research has shown that planning activities are influenced by a variety of demographic and psychological variables. However, few investigations have focused on how demographic and psychological factors influence the time and effort men and women allocate to retirement preparation. In the present study, 184 individuals completed a survey designed to assess future time perspective (FTP), worry about retirement, age, and income level. Hierarchical regression techniques were used to examine how these variables influenced the amount of time men and women spent planning for and thinking about retirement. Results revealed that women spent less time thinking about retirement than men, and gender was differentially related to the factors predictive of this activity. From an applied perspective, these findings suggest that separate retirement intervention programs are warranted that meet the unique needs of working men and women.

What drives retirement income worries in Europe? A multilevel analysis

Nations in Europe have been developing rapidly since the formation of the European Union (EU), not only socially and demographically, but economically as well. One question a number of countries will face during this period of structural transition will be how (and how well) they are able to support their citizens in old age. A related question involves whether individuals worry about their financial future in retirement, and the extent to which they take active steps to save in order to ensure an adequate standard of living. In this study, we analyze data from the third wave of the European Social Survey, which represents 21,416 working adults from 23 countries in Europe. We used multilevel modeling to focus on the explanatory factors that underlie individual and country-level effects in worry about future retirement income and saving behavior. Findings suggest that once individual-level dimensions are taken into account, country-level predictors explain appreciable variance in worry, but not saving practices. Moreover, we found that retirement income worries are more severe in countries with a strong projected increase in future population aging and a high level of income inequality. Finally, pension age reforms were not found to appreciably affect retirement income worries. Results of the study are discussed in terms of not only the individual difference dimensions that precipitate future income worry and saving, but also ways in which macro-level policy initiatives could potentially alleviate some of the worries of European citizens.

CHALLENGES OF TRAINING PRE‐RETIREES TO MAKE SOUND FINANCIAL PLANNING DECISIONS

One of the more pressing societal challenges American institutions will face in the coming decades is to ensure that individuals who choose to leave the workforce have made wise financial decisions in preparation for retirement (Cutler, Gregg, & Lawton, 1992). The present study was designed to measure pre‐retirees’ ability to make accurate decisions about the affordability of retiring from regular employment. The two goals of the investigation were to measure whether knowledge of finance and retirement planning mediated the quality of individuals’ decisions, and to determine whether a brief educational training program could be used to improve decision performance. A within‐subjects design was employed in which subjects were asked to provide solutions to four realistic retirement planning decision scenarios: two prior to an educational intervention, and two following the intervention. Results indicate that although subjects’ knowledge of the domain increased significantly as a function of training, the ov...

Agricultural cycle and the prevalence of posttraumatic stress disorder: A longitudinal community study in postwar Mozambique

The influence of physical activity on the prevalence and remission of war-related mental disturbances has never been systematically evaluated. This study examined the influence of participation in the agricultural cycle on the posttraumatic stress disorder (PTSD) prevalence and correlated symptoms longitudinally in post civil war Mozambique. Prevalence rates were examined in the end and the outset of the agricultural cycle in a community population (N = 240). The agricultural cycle, which is characterized by fluctuations in physical activities, social connectedness, and the sense of purpose in life influences the PTSD prevalence and correlated symptoms. By studying the influence of the agricultural cycle on PTSD prevalence, severe PTSD cases that fail to respond to the agricultural cycle can be identified, and subsequently evaluated regarding the need for specialized care.