Controlling For Additional Factors That Influence A Pre Retiree 's Standard Of Living

1427 WordsJan 12, 20176 Pages
Controlling for additional factors that influence a pre-retiree’s standard of living and ability to save, such as income, race, education, number of people living in the household, and marital status, the extent to which the independent variables influence the dependent variables will be evaluated using data from the 1995, 2004, and 2013 Federal Reserve Board’s Survey of Consumer Finances (SCF) triennial cross-sectional survey of U.S. families. Data will be compared among respondents age 35 to 64 at the time of the surveys. Significance Retirement planning is traditionally addressed by assessing the number of years a worker has until retirement, the amount of resources accumulated by the household, the projected annual amount of…show more content…
This study will enhance the advice financial practitioners provide to clients by exploring data that highlight a specific phenomenon preventing consumers from adequately saving for retirement. Also, understanding the roadblocks that prevent consumers from saving may lead to strategies that academics and industry practitioners can develop to assist consumers with the proper usage of debt and effective ways of eliminating debt. In addition, the proposed research intends to add to existing scholarship by examining the economic and behavioral differences of pre-retirees servicing high levels of consumer debt in comparison to pre-retirees not burdened with debt. The proposed research also contributes to the existing body of knowledge by utilizing the most recent data available to identify the reduction to the standard of living caused by debt, the significant cost of consumer debt, and debts implications on financial assets. The implications of this study may also provide insight into changes to the labor market if pre-retirees are forced to work longer than expected, in their final attempt to reduce debt prior to retirement. To this point, Li, Montalto, & Geistfeld (1996) noted that inadequacy of financial resources may necessitate re-entry to the labor force. For academia, understanding the significance of consumer debt in relation to retirement planning may assist in the development of updated

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