Cognitive Ability, Expectations, and Beliefs about the Future: Psychological Influences on Retirement Decisions
by Andrew Parker, Leandro Carvalho and Susann Rohwedder
|Examining American Life Panel (ALP) data on psychological influences on retirement data, we found that:
- Those with high levels of cognitive ability are more likely to retire later.
- Those with greater cognitive ability have more coherent expectations of retirement—suggesting a need for planning assistance to those with less cognitive ability.
- Those with greater longevity expectations are likely to retire later.
- Expectation of reduction in Social Security benefits is associated with plans to retire later.