UM12-11: Personality Traits and Economic Preparation for Retirement

Researchers

• Michael Hurd
• David Weir
• Susann Rohwedder
• Angela Lee Duckworth

Abstract

This paper assesses the effects of personality traits on economic preparation for retirement, wealth accumulation, and consumption, among persons 66 to 69 years of age. Among the five chief personality traits of neuroticism, extroversion, agreeableness, conscientiousness, and openness, we focus most on conscientiousness. We find levels of adequate economic preparation for retirement ranging  from 29 percent to 90 percent and that conscientiousness positively affects the proportion of persons adequately prepared for retirement, while neuroticism negatively affects it. Both consumption and wealth increase with conscientiousness but wealth increases faster, indicating that more conscientious persons save more out of retirement resources.

Publications

• Personality Traits and Economic Preparation for Retirement (Working Paper)
• Personality Traits and Economic Preparation for Retirement (Research Brief)
• Personality Traits and Economic Preparation for Retirement (Conference Paper)

Project Year

2012