Abstract
Retirement has been considered as a major transition in one’s life. Financial security in retirement is a major concern for many Americans. Evidence has shown that being financially prepared for retirement could has a significant, positive impact on one’s life satisfaction. Employing data from the 2012 and 2018 National Financial Capability Study (N=1023), this study analyzes the relationship between participants’ retirement planning in 2012 and their financial satisfaction in 2018. An Ordinary Least Squares regression is used in the current study. This study found relatively low retirement preparedness levels (retirement planning, retirement saving, retirement plan: employer-based or individually held, investment) among the participants in 2012. Based on the descriptive results, adults closest to retirement (ages 55 to 64) are more likely to be planning compared to the other groups, as are adults who were married, highly educated, males, and white. According to the liner regression results, this study found that adults who had a retirement savings goal, had a retirement plan (employer-based or individually held), made regular contributions to retirement plans, and owned investments in 2012 are more likely to be satisfied with their personal financial condition in 2018. As expected, individuals with higher incomes, larger net worth, and those who are older are significantly more likely to be financial satisfied. However, even after controlling for these variables, results show that planning does indeed impact the level of financial satisfaction. Our findings highlight the importance of policies and programs to support Americans with retirement planning.