Abstract : The issue of Retirement Readiness is increasing for people who do not have an employer to help them save for retirement (self-employed people, etc). Because the Theory of Planned Behavior focuses on how our attitudes, as well as social pressure, and perceived control shape our intentions to retire, it cannot fully explain why someone will make an attempt to accumulate funds for retirement but will fail to follow through and take action. A more human-centred approach has been taken using a combination of the Theory of Planned Behaviour and concepts from Behavioural Economics. The paper elaborates on the way that our common behavioural biases (present bias, overconfidence, loss aversion, and status quo bias) work against us saving for retirement, even when we have strong intentions to do so. By combining rational decision-making with emotional and automatic decision-making, the model presents an explanation for the continued separation of intention and action. Practical implications are discussed in terms of Education, Policy and Retirement Planning. This paper presents several avenues for future research.
Singh et al. (Tue,) studied this question.