Do you have the personality to retire rich and stay that way?
Your personality and other personal characteristics may have more impact on how quickly you spend your retirement savings, rather than factors such as your retirement savings, your age, marital status, your desire to inherit, and whether you continue to work during retirement. On Monday in Psychology and Aging.
Two characteristics – conscientiousness (for example, regular, meticulous, hardworking and cautious) and financial self-efficacy (which is a sense of flexibility and control over financial situations) – have the strongest direct relationship to people's withdrawal rates. retirement savings accounts. People with these characteristics retreated at a much slower rate.
Meanwhile, people who are more open to new experiences (eg creative, creative, adventurous and curious); more acceptable (eg sympathetic, caring, warm and helpful); and more neurotic (for example, often tense, anxious, pessimistic and non-calm people) were more likely to withdraw from retirement savings.
People who have had too much negative emotions in the past month – such as fear, fear, worry, anger, be guilty, embarrassed, bored, hostile, restless, annoyed, sad or bored – have a higher rate of retreat.
Possible causes? “More neuroticism and negative emotions can lead to impulsive financial behavior and poor timed investment decisions, Sarah said Sarah Asebedo, author of the study and professor of financial planning at Texas Tech University. Lar Those with greater acceptability tend to be warm, sympathetic, accommodating and attentive, and may therefore give priority to financial support to others (eg friends, family, charities) to protect the money in their accounts. ”
Ek Research suggests that higher openings tend to give less value to tangible goods and more experience, but still show impulsivity and less cautious money management behaviors that can result in higher withdrawal rates, ek he said.
The study looked at the personality data of more than 3,600 people aged 50 and over (average age 70) in the United States and matched with the tax data of the same participants.
Study authors – financial planning professors Asebedo and Christopher Browning at Texas Tech University – point out that a higher withdrawal rate is not always a bad thing. “A higher portfolio withdrawal rate is about whether the individual will run out of money too early. However, if the high portfolio withdrawal rate does not risk being free, then you can live a good life. ”