Changes of financial welfare with retirement : does retirement planning matter?

Bachmann, Kremena

Publication type:	Conference paper
Type of review:	Peer review (publication)
Title:	Changes of financial welfare with retirement : does retirement planning matter?
Authors:	Bachmann, Kremena
et. al:	No
Conference details:	European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022
Issue Date:	2022
Language:	English
Subjects:	Voluntary retirement saving program; Retirement planning; Negative income shock
Subject (DDC):	332: Financial economics
Abstract:	The financial situation of households can change dramatically after retirement. The availability of financial resources affects the subjective financial welfare of the households, but its impact is heterogeneous. Using a within-subject analysis of a representative sample of individuals in Switzerland, this paper analyses whether participating in voluntary retirement saving programs as a way to prepare for retirement can explain the heterogenous response in the subjective welfare of households facing the same change of income after retirement. The results of the analysis reveal that the subjective financial welfare of households experiencing the same income drop after retirement decrease less if they have prepared for retirement. This moderating effect of voluntary savings programs is different from other retirement preparation measures such as owning real estate or building net wealth and it is robust to alternative specification of income and subjective financial welfare. Moreover, the moderating effect of voluntary retirement saving programs does not reflect a mere ability to save. These results show that participation in voluntary retirement savings programs as a way to prepare for retirement can smooth the subjective financial welfare in the presence of negative income shocks after retirement, which widens the perspective of policy makers offering such programs.
URI:	https://digitalcollection.zhaw.ch/handle/11475/26102
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute of Wealth & Asset Management (IWA)
Appears in collections:	Publikationen School of Management and Law

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Bachmann, K. (2022). Changes of financial welfare with retirement : does retirement planning matter? European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022.

Bachmann, K. (2022) ‘Changes of financial welfare with retirement : does retirement planning matter?’, in European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022.

K. Bachmann, “Changes of financial welfare with retirement : does retirement planning matter?,” in European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022, 2022.

BACHMANN, Kremena, 2022. Changes of financial welfare with retirement : does retirement planning matter? In: European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022. Conference paper. 2022

Bachmann, Kremena. 2022. “Changes of Financial Welfare with Retirement : Does Retirement Planning Matter?” Conference paper. In European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022.

Bachmann, Kremena. “Changes of Financial Welfare with Retirement : Does Retirement Planning Matter?” European Financial Management Association Annual Meeting, Rome, Italy, 29 June - 2 July 2022, 2022.