How Pre-retirement education in the work place helps workers to plan for retirement

Abstract

Saving inadequacy is an important issue among American retiring workers. This is the result of the fact that most Americans are facing retirement planning difficulties. Retirement-related knowledge plays an important role in retirement planning, since enough information is an essential assumption in life-time utility optimizing behavior. My thesis is focused to answer two questions: first, what factors influence retiring workers’ retirement-related knowledge; second, how does the knowledge affect workers’ planning. Data is from Participants Attending Retirement Seminars (PARS) program, which is developed by NC State University. There are in total four regression models provided in this thesis. A special variable is defined to indicate lack of planning. Education level and financial wealth level appears to be significant in learning knowledge. Female tend to answer less in retirement planning questions than male do.