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The main purpose of this study was to identify differences in factors that predict financial satisfaction among retirees and non-retirees and to ascertain how retirees and non-retirees differ in financial beliefs and behavior. Non-retirees were more likely than otherwise similar retirees to report worrying about finances. A higher proportion of non-retirees reported dissatisfaction with various aspects of their financial situation. However, non-retirees were more likely to perceive themselves as financially better offin comparison to others, or in relation to the past, than the retired respondents. Non-retirees were more optimistic about their future financial situation.
Key Words: Financial situation, Retirees, Satisfaction
Retirement refers to a condition in which an individual is forced or allowed to leave the labor market, or is employed less than full-time, and in which his or her income is derived, at least in part, from a retirement pension earned through past years of service as a job holder (Atchley, 1970). It is therefore the final phase of the occupational life cycle. The employment necessary to make retirement possible need not be continuous. Palmore, Fillenbaum and George (1984) caution that retirement is not synonymous with work cessation because many retirees go back to the labor market for post retirement employment.
Older Americans are the most rapidly growing population segment and are expected to constitute one fifth of the population by 2035 (Schulz, 1992). Moehrle (1990) predicted that people ages 65 and over will make up more than 23 percent of the population in 2030. Though the normal retirement age (NRA) is 65 years, most people retire before this age despite the unavailability of medical benefits until age 65 (Munnel, 1991). As the number of the elderly persons has increased, the average age of retirement has declined (Moon, 1990), and the number of retirees has therefore increased.
Cutler (1991) observed that the presence of people living longer is producing a population characterized by unparalleled financial as well as social, cultural, and political implications. Revealing factors that affect financial behavior and satisfaction among the retirees is therefore important for policy and educational implications.
The purpose of this study is therefore to identify differences in factors that predict financial satisfaction between retirees and non-retirees. Financial satisfaction among retirees and non-retirees is critical in that financial...