Inappropriate Confidence and Retirement Planning
Four Studies with a National Sample
Bibliographic Data
| ID | 12166706 |
|---|---|
| Authors | Andrew M Parker (0000-0001-7511-0894, RAND Corporation Pittsburgh PA USA, corresponding author), W Bruine De Bruin (0000-0002-1601-789X, Department of Social and Decision Sciences Carnegie Mellon University Pittsburgh PA USA), Joanne Yoong (0000-0002-0162-9885, RAND Corporation Arlington VA USA), Robert J Willis (University of Michigan), Robert Willis (0009-0000-9696-5648, Department of Economics University of Michigan Ann Arbor MI USA) |
| Year | 2011 |
| Volume | 25 |
| Issue | 4 |
| Pages | 382-389 |
| Publication date | 2011-06-15 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Behavioral Decision Making (JOURNAL) |
| Journal identifiers | ISSN: 0894-3257 • E-ISSN: 1099-0771 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/bdm.745 |
| PMID | 23049164 |
| PMCID | PMC3462465 |
| OpenAlex | W1896146582 |
| Language | EN |
| Citations received | 22 |
| References cited | 37 |
Financial decisions about investing and saving for retirement are increasingly complex, requiring financial knowledge and confidence in that knowledge. Few studies have examined whether direct assessments of individuals' confidence are related to the outcomes of their financial decisions. Here, we analyzed data from a national sample recruited through RAND's American Life Panel (ALP), an internet panel of U.S. adults aged 18 to 88. We examined the relationship of confidence with self-reported and actual financial decisions, using four different tasks, each performed by overlapping samples of ALP participants. The four tasks were designed by different researchers for different purposes, using different methods to assess confidence. Yet, measures of confidence were correlated across tasks, and results were consistent across methodologies. Confidence and knowledge showed only modest positive correlations. However, even after controlling for actual knowledge, individuals with greater confidence were more likely to report financial planning for retirement and to successfully minimize fees on a hypothetical investment task. Implications for the role of confidence (even if it is unjustified) in investment behavior is discussed
Actuarial science · Economics · Retirement planning · Sample (material · Decision-Making and Behavioral Economics · Financial Literacy, Pension, Retirement Analysis · Psychology · Retirement, Disability, and Employment
The Effects of Perceived and Actual Financial Literacy on Financial Behaviors
Financial literacy and its variables
The Impact of Financial Socialization, Cognitive Ability and Self-efficacy on Financial Literacy of Investors in Pakistan
The association between subjective and objective financial knowledge
Competence, Confidence, and Gender
When competence and confidence are at odds
A Longitudinal Test of Three Theories of Overconfidence
The Effect of Financial Literacy Confidence on Financial Risk Preference Confidence. A Lab Experiment Approach
Psychological and Behavioral Consequences of Confidence in Knowledge
Decision Pattern Analysis as a General Framework for Studying Individual Differences in Decision Making
Measuring decision‐making competence in Chinese adults
Influencing Confidence
Identifying the Effects of Unjustified Confidence versus Overconfidence
Individual Differences in Decision‐making Competence
Information avoidance behavior
When IPCC graphs can foster or bias understanding
The effects of perceived and actual financial knowledge on regular personal savings
Working Adults’ Metacognitions Regarding Financial Planning for Retirement
A Survey of Retirement Readiness Among African-Americans
The Importance of Financial and Pension Literacy in Closing the Financial Advice Gap in the U.K
Gender- and education-related effects of financial literacy and confidence on financial wealth
Reassessing the Role of Financial Knowledge and Confidence for Financial Outcomes Across Income Groups in the EU
Overconfidence and Excess Entry
Boys will be Boys
Do Investors Trade Too Much?
Individual differences in reasoning
Managerial Perspectives on Risk and Risk Taking
The Role of Perceived Control and Overconfidence in Pathological Gambling
Personality Correlates of Confidence in One's Decisions
Decision‐making competence
Identifying the Effects of Unjustified Confidence versus Overconfidence
Intuitive evaluation of likelihood judgment producers
The recalcitrance of overconfidence and its contribution to decision aid neglect
Coefficient alpha and the internal structure of tests
Self-efficacy mechanism in human agency
Individual differences in adult decision-making competence
The trouble with overconfidence
Consumer Knowledge Assessment
Knowledge Calibration
| Unique citing works | 22 |
|---|---|
| Citations per year | 1,57 |
| Citation span | 2012 - 2025 (14) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 22 |