Retirement Planning Case Study

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1.0 CHAPTER OVERVIEW This chapter provides an introduction to the study work presented in this report. It provides an overview of the approach use by the researcher besides introduces the structure of the report. A part from that, this chapter also focus on background of the study and come out with problem statement, research question, research objective, significant of study and also definition of the term use in this research. 1.1 BACKGROUND OF THE STUDY “Some people retire to satisfying lives, others to unhappy, I even miserable ones. In most cases, the cause for these differences lies, said that it not in our wallets but in ourselves.” , (Retirement Readiness Report, 2009). Get ready for retirement means you have to consider your financial…show more content…
There is little previous research investigating this connection between personality and retirement planning, (Feldman and Beehr, 2011). The goal of this study is to identify whether personality characteristics can affect the retirement planning and how far the personality influences them. In the previous research, most studies of financial planning and investing have used demographic indicators for example age, gender, and income to predict individual differences in saving that influences the retirement planning. In these study, four types of personality is tested to determine the real personality that suit the respondent in order to make them know their own personality and the way they save and behave towards retirement planning which are conscientiousness, openness, extraversion, and neuroticism. Differences exist among the personality types regarding financial risk tolerance and retirement planning actions. In other word, all these type of the personality must be educated about the component in financial risk tolerance. This is due to the differences between each of personality. They need to know what is risk, what is the impact, and the positive relationship between risk and return. This is the use of financial literacy among them. They need to have good and strong financial knowledge in order to plan…show more content…
The present study is consistent with the previous research. Previous study found out that extraversion should lead to a wider and stronger support network in retirement.(Oliver C.Robinson, 2010). This is because the people with full of aggressive, energetic and love on adventure and risk tend to have proper and more valuable retirement planning decision. They are expose on different kind of investment, upper or lower risk to their retirement planning decision. This is also support with Retirement Style Matter, (2012) which is the report says that extraversion person tend to have a higher risk tolerance, or in other word mean risk taker which potentially gives higher returns in the retirement but they may take on too much risk and lose their money due the attitude that love

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