바로가기메뉴

본문 바로가기 주메뉴 바로가기

ACOMS+ 및 학술지 리포지터리 설명회

  • 한국과학기술정보연구원(KISTI) 서울분원 대회의실(별관 3층)
  • 2024년 07월 03일(수) 13:30
 

logo

Effect of Age Cohort on Life Cycle Financial Planning

Effect of Age Cohort on Life Cycle Financial Planning

동아시아경상학회지 / East Asian Journal of Business Economics, (E)2288-2766
2014, v.2 no.4, pp.26-47
https://doi.org/10.13106/eajbe.2014.vol2.no4.26.
Jee Yoong Folk (SEGi University, Petaling Jaya, Malaysia)
  • 다운로드 수
  • 조회수

Abstract

The paper examined effect of age cohort on life cycle financial planning. A total of 990 questionnaires were distributed with a 55.2% return rate. Seven hypotheses were analysed using hierarchical and ordinary regression analysis. The results revealed that age cohort variables made significant contribution to life cycle financial planning as well as personal orientation towards retirement planning, particularly the younger age cohort. Age cohorts do affect personal orientation towards retirement planning with the confidence level making a significant impact. Current financial resources do have a strong positive impact on consumption for all age cohorts. On the other hand, no significant effect was found between age cohorts and current financial resources but older age cohorts were relatively more significant predictors. The implication was that not only should their individual perceptions of financial planning become an increasingly important part of people’s long-term commitment throughout their life-cycle, it must also assume the role as a self-directed life-long learning process, in view of the ever-changing and complicated financial environment.

keywords
Life Cycle, Financial Planning, Age Cohort, Financial Resources, Consumption

참고문헌

1.

Aguiar, M., and Hurst, E., 2005, Consumption vs. Expenditure. Journal of Political Economy, 113(5), 919-948.

2.

Aquiar, M., and Hurst, E., 2007, Lifecycle Prices and Production. American Economic Review, 97(5), 533-1559.

3.

Ameriks, J., Caplin, A., and Leahy, J., 2002, Retirement Consumption: Insights from a Survey. NBER Working Paper No. 8735.

4.

Anderson, K.H., Burkhauser, R.V., and Quinn, J.F., 1986, Do Retirement Dreams Come True? The Effect of Unanticipated Events on Retirement Plans. Industrial and Labor Relations Review 39(4), 518-26.

5.

Ando, A., and Modigliani, F., 1957, Tests of the life cycle hypothesis of saving: Comments and suggestion. Oxford Institute of Statistics Bulletin, 19, 99-124.

6.

Ando, A., and Modigliani, F., 1963, The life-cycle hypothesis of saving: Aggregate implications and tests. American Economic Review, 53, 55-84.

7.

Asher, M.G., 2002, Behavioral Economics and Retirement Well-being in Asia. International Center for Pension Research, Research Report No. 4-2002.

8.

Aspinwall, L., and Taylor S., 1997, A stitch in time: Self-regulation and proactive coping. Psychological Bulletin, 121(3), 417-436.

9.

Attanasio, O.P., and Weber, G.,,1989, Intertemporal Substitution, Risk Aversion and the Euler Equation for Consumption. Economic Journal, 99(395), 59-73.

10.

Attanasio, O.P., and Weber, G., 1993, Consumption Growth, the Interest Rate and Aggregation, Review of Economic Studies, 60(3), 631-49.

11.

Attanasio, O.P., Banks, J., Meghir, C., and Weber, G.,,1999, Humps and Bumps in Life-Time Consumption. Journal of Business and Economic Statistics, 17(1), 22-35.

12.

Attanasio, O.P., and Browning, M., 1995, Consumption over the life cycle and over the business cycle. American Economic Review, 85(5), 1118-37.

13.

Banks, J., Blundell, R., and Tanner, S., 1998, Is There a Retirement-Savings Puzzle? American Economic Review, 88(4), 769-788.

14.

Battistin, E., Brugiavini, A., Rettore, E., and Weber, G., 2008, The retirement consumption puzzle: Evidence from a regression discontinuity approach. IPS WP08/05.

15.

Beattie, R., 1998, Pension systems and prospects in Asia and the Pacific. International Social Security Review, Vol. 51, No. 3, 63-87.

16.

Beh, L.S., and Folk, J.Y., 2011, Influence of financial education on retirement preparation in Malaysia. African Journal of Business Management, 6(28), 8344-8352.

17.

Bernheim, B. D., Skinner, J., and Weinberg, S., 2001, What accounts for the variation in retirement wealth among US households? American Economic Review, 91(4), 832-857.

18.

Belsky, E. and Prakken, J., 2004, Housing wealth effects: Housing’s impact on wealth accumulation, wealth distribution, and consumer spending. Working Paper W04-13, Cambridge, MA: Joint Center for Housing Studies of Harvard University.

19.

Bernheim, B.D. and Scholz, J.K., 1993, Do Americans save too little? Business Review, 9/10, 3-21.

20.

Bosworth, B., Burtless, G., and Sabelhaus, J., 1991, The decline in saving: Some microeconomic evidence. Brookings Papers on Economic Activity 1, 183-256.

21.

Browning, M., and Lusardi, A., 1996, Household saving: Micro theories and micro facts. Journal of Economic Literature, 34(4), 1797-1855.

22.

Carroll, C.D., 1992, The buffer-stock theory of saving: Some macroeconomic evidence. Brookings Papers on Economic Activity, 1992(2), 61-156.

23.

Carroll, C.D., 1997, Buffer-stock saving and the life cycle/permanent ncome hypothesis. The Quarterly Journal of Economics, 112(1), 1-55.

24.

Carroll, C.D., and Summers, L., 1989, Consumption growth parallels income growth: Some new evidence. NBER Working Papers 3090.

25.

Carroll, C., Otsuka, M., and Slacelek, J., 2006, How large is the housing wealth effect? A new approach.” Mimeo.

26.

Case, K. E., Quigley, J.M., and Shiler, R.J., 2005, Comparing wealth effects: The stock market versus the housing market. Advances in Macroeconomics 5(1): Article 1.

27.

Davis, M., and Palumbo, M., 2001, A primer on the economics and time series econometrics of wealth effects. Federal Reserve Finance and Economics Discussion Series 2001-9. Washington, DC: Federal Reserve Board.

28.

Deaton, A., and Paxson, C., 1997, The effects of economic and population growth on national savings and inequality. Demography, 34, 97-114.

29.

Deaton, A., and Paxson C., 2000, Growth and saving among individuals and households. Review of Economis and Statistics, 82(2), 212-233.

30.

Disney, R., and Tanner, S., 1999, What can we learn from retirement expectations data? The Institute for Fiscal Studies. Working Paper Series No. W99/17.

31.

Elder, G.H., and Caspi, A., 1990, Studying lives in a changing society: Sociological and personological explorations. In A. Rabin, R. Zucker, R. Emmons and S. Frank (Eds.), Studying Persons and lives (pp. 201-247), New York: Springer Publishing Company.

32.

Dushi, I., and Webb, A., 2004, Household annuitisation decisions: Simulations and empirical analyses. Journal of Pension Economics and Finance, 3(2).

33.

Feeney, G., and Mason, A., 2001, Population in East Asia. In Andrew Mason (ed.) Population Change and Economic Development in East Asia: Challenges Met, Opportunities Seized, Stanford: Stanford University Press.

34.

Fisher, J., Johnson, D.S., Marchand, J., Smeeding, T.M., and Torrey, B.B., 2005, The retirement consumption conundrum: Evidence from a consumption survey. Centre for Retirement Research, Boston College.

35.

Folk, J.Y., 2011, Retirement Financial Planning by Malaysian Chinese, Lambert Academic Publishing AG & Co., Cologne, Germany.

36.

Folk, J.Y., Beh, L.S., and Baranovich, D.L., 2012, Financial education: Determinant of retirement planning in Malaysia. E3 Journal of Business Management and Economics, 3(2), 69-78.

37.

Folk, J.Y., Beh, L.S., and Baranovich, D.L., 2012, Financial literacy key to retirement planning in Malaysia, Journal of Management and Sustainability, 2(1), 75-86.

38.

Friedman, M., 1957, A theory of the consumption function. Princeton, NJ: Princeton University Press.

39.

Fretz, B.R., Kluge, N.A., Ossana, S.M., Jones,, and Merikangas, M.W., 1989, Intervention strategies for reducing pre-retirement anxiety and depression. Journal of Counselling Psychology, 36, 310-317.

40.

Glasmer, F.D., 1981, Predictors of retirement attitudes. Ageing and Work, 4, 23-29.

41.

Gourinchas, P.O., and Parker, J.A., 2002, Consumption over the life cycle. Econometrica, 70(1), 47-89.

42.

Haider, S.J., and Stephens, M., 2004, Is there a retirement-consumption puzzle? Evidence using subjective retirement expectations. NBER Working Paper No. 10257.

43.

Hamermesh, D.S., 1984, Consumption during retirement: The missing link in the life-cycle. Review of Economics and Statistics, 66(1), 1-7.

44.

Hershey, D.A., and Mowen, J.C., 2000, Psychological determinants of financial preparedness for retirement. The Gerontologist, 40(6), 687-697.

45.

Holzmann, R., and Hinz, R., 2005, Old age income support in the 21st century. Washington, D.C.: The World Bank.

46.

Horioka, Y., 2006, Do the elderly dissave in Japan? Osaka University, 2006, www2.e.u-tokyo.ac.jp/~seido/output/Horioka/horioka001.pdf

47.

Hubbard, R.G., Skinner, J., and Zeldes, S.P., 1994, The importance of precautionary motives in explaining individual and aggregate saving. Carnegie-Rochester Conference Series on Public Policy, 40, 59-125.

48.

Hubbard, R.G., Skinner, J. and Zeldes, S.P., 1995, Precautionary saving and social insurance. Journal of Political Economy, 103(2), 360-99.

49.

Hurd, M. and Rohwedder, S., 2006, Some answers to the retirement-consumption puzzle. NBER Working Paper 12057.

50.

Loughran, D., Constantijn, P., Hurd, M., and Reti, M., 2001, Retirement planning. RAND Manuscript.

51.

Lusardi, A., 1999, Information, expectations, and savings. In Behavioral Dimensions of Retirement Economics, Henry Aaron, eds. New York: Brookings Institution Press/Russell Sage Foundation, 1999, 81-115.

52.

Lusardi, A., 2006, Planning and financial literacy: How do women fare? MRRC Working Paper 2006-136. University of Michigan.

53.

Lusardi, A., and Mitchell, O.S., 2006, Financial literacy and planning: Implications for retirement wellbeing. http://www.dartmough.edu/~alusardi/Papers/FinancialLiteracy.pdf.

54.

Maestas, N., 2004, Back to work: Expectations and realizations of work after retirement. Michigan Retirement Research Center: Working Paper 2004-085.

55.

Modigliani, F., and Brumberg, R., 1954, Utility analysis and the consumption function: An interpretation of cross-section data. In K. Kurihara, (ed.). Post Keynesian Economics, Rutgers University Press, New Brunswick, NJ.

56.

Moore, J., and Mitchell, O., 2000, Projected retirement wealth and saving adequacy. In Olivia Mitchell, Peter Hammond and Anna Rappaport, eds. Forecasting Retirement Needs and Retirement Wealth, Philadelphia: University of Pennsylvania Press, 68-94.

57.

Muellbauer, J., and Murphy, A., 1997, Booms and Busts in the UK housing market. Economic Journal 107(445), 1701-1727.

58.

O'Rand, A.M., and Landerman, L.R.,,1984, Women's and men's retirement income: Early family role effects. Research on Aging, Vol. 6(1) March, 25-44.

59.

Paxson C.H., 1996, Saving and growth: Evidence for micro data. European Economic Review, Vol. 40, 255-288.

60.

Ryder, N.B., 1965, The cohort as a concept in the study of social change. American Sociological Review, 30(6), 843-861.

61.

Skinner, J., 1996, Is housing wealth a sideshoe? In Advances in the Economics of Aging, edited by David A. Wise. Chicago, IL: University of Chicago Press (for NBER).

62.

Smith, S., 2006, Can the retirement puzzle be resolved? Evidence from UK panel data. Economic Journal, 116(510), C130-C148.

63.

Stoller, E. P., and Gibson, R., 2000, Advantages of using the life course framework in studying aging. In E. P. Stoller & R. Gibson (Eds.), Worlds of difference: Inequality in the aging experience (pp. 19-33). Thousand Oaks, CA: Pine Forge Press.

64.

Tan, H.K., and Folk, J.Y., 2011, Knowing when to retire: The first step towards financial planning in Malaysia, Educational Gerontology, 37(10), 854-884.

65.

Tan, H.K., and Folk, J.Y., 2011, Expected retirement age: A determinant of financial planning preparation in Malaysia, African Journal of Business Management, 5(22), 9370-9384.

66.

Tan, H.K., Folk, J.Y., and Choong, K.F., 2012, Influence of age cohort on retirement planning, African Journal of Business Management, 6(22), 6617-6630.

67.

Tan, H.K., Folk, J.Y., and Choong, K.F., 2012, Age cohort effect on financial planning preparation, Journal of Management and Sustainability, 2(2), 18-34.

68.

Thompson, W.E., 1958, Pre-retirement anticipation and adjustment in retirement. Journal of Social Issues, 14, 35-45.

69.

Vinick, B.H., and Ekerdt, D.J., 1989, Retirement and the family. Generations, 13(2), 53-56.

70.

Stephen P. (1989). Consumption and liquidity constraints: An empirical investigation. Journal of Polictical Economy, 97(2), 305-46.

동아시아경상학회지