Joanne K. Earl

Understanding the influence of demographic and psychological variables on retirement planning.

The authors examined the degree to which workers were engaging in financial, health, interpersonal/leisure, and work planning for retirement, exploring whether demographic and psychological variables inhibited or promoted planning in each of these domains. Planning in each domain was influenced by a unique set of variables. Goals emerged as a consistent and positive predictor of planning. Gender accounted for health and interpersonal/leisure planning, while work planning behavior was negatively predicted by income. Time perspective also helped to clarify the amount of retirement planning undertaken in the financial and interpersonal/leisure domains. Practical implications for designing retirement interventions are discussed.

Improving retirement outcomes: the role of resources, pre-retirement planning and transition characteristics

ABSTRACT Retirement is an inherently complex process due to the multitude of variables that influence it. The present article proposes that by combining our understanding of retirement phases (a conceptual framework) with a theory that specifies a general mechanism for retirement adaptation (a theoretical framework), we can improve how we research retirement. Accordingly, this study proposes and tests a model exploring the antecedents and consequences of the retirement process across three stages: Pre-retirement, Transition and Adaptation, using data collected from 550 Australian retirees. Multiple outcomes are explored, including adjustment, wellbeing and life satisfaction, as well as variables including planning, perception of wealth, resources and mastery. The model showed a significant influence of resources on both phases and outcomes, with mastery showing the strongest relationships of all the resources. Results suggest that outcomes in retirement may be improved by promoting retirement planning, improving exit conditions and building key resources, in particular, mastery. Overall, the model demonstrates the value of combining theory and conceptual frameworks to inform the specification of statistical models to research retirement. Research implications and alternative models are discussed.

Undergraduate level, age, volume and pattern of work as predictors of career decision status

The impact of undergraduate level, age, volume and pattern of work experience on career decision status was investigated. A sample of 804 first year students and 353 third year students completed measures of career decision status and work experience including amount and pattern of work experience (i.e., full-time, part-time or casual), number of different employers, and number of different jobs. Comparing the effects of age and undergraduate level we determined that age was a better predictor of career decision status, although students across the two undergraduate levels identified different reasons underlying their status. Volume of work rather than pattern of work determined variability in scores on the career measures. Breadth of work experience measured by number of jobs and employers did not influence career decision status. Implications for future research and vocational counselling are discussed.

Accuracy in Self-assessment: The Role of Ability, Feedback, Self-efficacy and Goal Orientation

Self-estimates of ability have been shown to be generally inaccurate but still continue to be used in career decision-making. The present study investigates the role of feedback and individual differences in goal orientation and self-efficacy in determining accuracy of self-estimates. A total sample of 94 high school-aged students gave self-estimates of their ability and completed questionnaires regarding self-efficacy, goal orientation and feedback. Participants were categorised as over-estimators, under-estimators or accurate estimators according to the difference between their self-estimate of ability and an objective measure. Results indicated four main areas of feedback sources, and a positive relationship between ability and accuracy of self-estimates. Learning goal orientation and use of feedback were positively related; however their effects on accuracy of self-assessment were contrary to those hypothesised. Practical implications of these findings for career decision-making, as well as suggestions for future research are discussed.

Financial literacy, financial judgement, and retirement self-efficacy of older trustees of self-managed superannuation funds

We investigate relationships between retirement self-efficacy, financial literacy and financial judgement across a sample of older trustees of self-managed superannuation funds (SMSFs). Aside from demographic factors, we explore self-rated dementia behaviours, general mental ability, mastery and risk tolerance. An increasing number of older people are controlling significant assets, particularly those who elect to become self-managed superannuation fund trustees. The ageing population, including self-managed superannuation fund trustees, is susceptible to cognitive decline with advancing age. We find that cognitive ability and self-rated behavioural dementia symptoms both relate to financial literacy. Variance in retirement self-efficacy was explained by age, cognitive ability, financial literacy, mastery and self-rated behavioural dementia symptoms. Those reporting dementia symptoms appear more vulnerable to making poor financial judgements. Findings have important implications for financial literacy interventions and the monitoring of on-going cognitive decline.

Understanding heterogeneity in adaptation to retirement: a growth mixture modeling approach.

Previous research has shown that as people transition to retirement they display heterogeneous growth in outcomes. Typically three subgroups are observed, in which people either increase, decrease, or maintain their scores over time. Extending this research, this study investigates whether subgroups exist independent of the retirement event and compares growth in two outcome measures–retirement adjustment and life satisfaction. Survey data were collected from 360 retirees across three time points. For life satisfaction, growth mixture modeling identified three distinctly growing subgroups. The majority maintained their scores over time, and two smaller groups showed increases and decreases in life satisfaction over time. No subgroups were identified for retirement adjustment. Implications of these results are discussed and suggestions are made for future research.

The contribution of spirituality to the process of retirement

The process of withdrawing from the full‐time workforce to pursue other interests is traditionally known as retirement. As governments and individuals strive for self‐sufficiency, the role of retirement planning becomes very relevant. Spirituality has an important role to play in retirement planning at an organizational and individual level. At an organizational level, we recognize the relationship between workplace spirituality and work outcomes, which in turn predicts retirement intentions. We acknowledge the importance of workplace spirituality in recognizing the “whole person” in the career development process and easing the transition from work to retirement. Organizations play a role in preparing and supporting employees in making decisions and implementing plans. At an individual level, there are three important ways that spirituality contributes to retirement: individual spirituality and its relationship to workability, coping with unexpected changes and the issue of time perspective (i.e. where the future ends). Recommendations for future research and practical implications are presented.

THE IMPACT OF WORK QUALITY AND QUANTITY ON THE DEVELOPMENT OF CAREER DECISION STATUS

A study is reported that investigates the relationship between career decision status, quantity and quality of work experience obtained by university students. Career decision status is the term used to capture an individuals level of decidedness and comfort with their career decisions and the reasons underlying this state (Jones & Lohmann, 1998). Measures of career decision status were collected from students enrolled in the third year of a Computer Science and Engineering degree over two phases: at the beginning of their third year (Time I); and at the beginning of fourth year (Time II). In between phases, some students completed paid intensive training placements as part of their course requirements, others gained non-degree relevant work experience and others did not work at all. Information was collected on the quantity of work undertaken and quality of work in terms of satisfaction, met expectations and relevance to course of study. Decidedness about career choice was a function of satisfaction and met expectations at work, rather than the number of hours worked. Decisiveness was a function of relevance of work to university degree, rather than the number of hours worked.

When Cognitive Functioning Meets Financial Literacy and Judgment in Older Age: Advising Those Self-Managing Retirement Savings

We investigate the relationships between measures of financial literacy, applied financial literacy, financial judgment and measures of fluid and crystallised cognitive ability. Given an ageing population and the responsibility for managing savings in retirement, this relationship is of increasing importance. We find differences between those people who self-manage large retirement savings portfolios and those with money in institutional retirement savings funds, with the former displaying greater financial literacy and judgment than is generally observed in members of institutional funds. We determine that different cognitive processes underlie financial literacy and financial judgment, and that these are susceptible to decline at different rates. Findings have important implications for the monitoring of cognitive ability, financial literacy and financial judgment over time.