Do you have the personality to retire rich – and stay that way?
Your personality and other personal traits may have a greater impact on how quickly you spend your retirement savings than factors such as age, marital status, desire to leave an inheritance, and whether you continue to work during retirement, according to a study, published on Monday in the journal Psychology and Aging.
Two traits – conscientiousness (for example, you are organized, meticulous, hardworking and prudent) and financial self-efficacy (which is a sense of resilience and control over financial situations) – had the strongest direct connection to the speed at which people were drawn from their retirement savings accounts. People with these traits retired at a much slower rate.
Meanwhile, people who are more open to new experiences (such as those who are creative, imaginative, adventurous and curious); more pleasant (for example, those who are nice, caring, warm and helpful); and more neurotic (for example, people who are often nervous, anxious, moody, and restless) are more likely than others to withdraw from their retirement savings at a faster rate.
And people who have experienced many negative emotions in the last month ̵
Possible causes? "Greater neuroticism and negative emotions can lead to impulsive financial behavior and poor investment decisions," said Sarah Acebedo, author of the study and professor of financial planning at Texas Tech University, for the findings. "Those who are better at being friendly tend to be warm, nice, welcoming and caring and can therefore prioritize giving financial support to others (eg friends, family, charity) over keeping the money in their accounts
And she adds, "Studies show that those with greater openness tend to give less value to material goods and more to experience, but also demonstrate impulsiveness and less prudent management behavior. of money, which oh new can lead to higher rates of withdrawal. "
study examined individual data from more than 3,600 people in the US aged 50 or older (median age 70) and paired it with tax data from the same participants.
The study's authors – Asebedo and Christopher Browning, also a professor of financial planning at Texas Tech University – beware that a higher download rate is not always a bad thing. "A higher rate of portfolio withdrawal is a concern if it puts the individual on track to run out of money too early. However, if the higher rate of portfolio withdrawal does not put you at risk of running out of money, then it can greatly facilitate a well-lived life, "Ascededo said in a statement.