Psychosocial determinants and decision making in aging women’s retirement planning

After a period of work comes retirement and for many, it is a psychologically and financially complex time of their lives. The increases in lifespan, retirement age, and cost of living contribute to concerns that pensions and retirement plans are insufficient to sustain the lifestyle of retirees. This issue of selected articles focuses on women’s retirement – retirement planning and retirement decisions, including the choice to retire and financial plans. Although retirement planning takes into account the individuals’ goals and the income needed to achieve one’s goals, psychosocial factors such as an individual’s attitude influences whether one is successful in making the transition to retirement. In this issue of Women and Aging, a selection of articles address retirement planning – psychosocial determinants and choice.

An aspect of retirement planning discussed by the authors featured in this issue focuses on psychosocial determinants of retirement planning behavior. Sue Farrar, Jonathan Moizer, Jonathan Lean and Mark Hyde’s manuscript “Gender, financial literacy, and preretirement planning in the UK” examines how among women’s plans for retirement are impacted by their attitude and expectations. Attitudes determine behaviors, and it is essential to not only understand the intentions of women planning for retirement but also understand the associated risks. For example, the submission by Liam Foster, Martin Heneghan, and Dinali Wijeratne, “Women millennials’ perceptions of pension savings through the use of autoenrollment in the UK pension system,” explores the attitudes and motivations toward pension saving with particular risks of under-saving among women.

The collection also features articles relevant to retirement decisions, particularly the importance of choice. Retirement is a sophisticated “developmental” experience. Among women, the challenges and decisions faced during their working lives resurface when making decisions about retirement. For example, family and financial obligations influence women’s decision to continue to work. Understanding how women’s decisions to retire impact their wellbeing is the focus of the article “Level of choice in older women’s decisions to retire or continue working and associated wellbeing” by Nicky J. Newton, Preet K. Chauhan, Shauna T. Spirling and Abigail J. Stewart. Another critical aspect of retirement planning is the decisions women make about their retirement accounts. Shan Lei’s manuscript, “Single women and stock investment in individual retirement accounts,” explores the intersection of gender with financial decisions about the composition of the retirement investment portfolio.

Taken together, the articles in this issue offers its readers a cross-sectional view of women planning retirement and their financial choices. By presenting a nuanced look at how women differentially approach retirement planning and financial decisions, there are opportunities to highlight interventions that will help women navigate this developmental experience successfully.