Student Activities 2007-2008

Chris Miller

Students and Retirement Savings Predictors

Activity:
Students and Retirement Savings Predictors

Abstract:
The purpose of this study is to investigate the retirement savings behavior (i.e., planning for retirement) of American college students. Based on the literature, we developed a five-factor model (i.e., risk-aversion, financial background, saving behavior, financial literacy, savings beliefs) to predict college students’ retirement savings behavior. We administered a self-report measure to 163 undergraduate students at a southeastern university. The five predictor variables were simultaneously entered into a regression. As predicted, these five factors successfully predicted retirement savings behavior in this sample of college students. Of particular importance were financial literacy, savings beliefs and savings behavior. Measures of each of these variables were individually significantly correlated with the measure of retirement savings behavior. Limitations and future directions are discussed.