Students and Retirement Saving Predictors

Christopher Michael Miller, University of North Florida


Over the past century Americans have significantly increased personal income yet decreased personal savings. The researchers in this study examine college students habits and beliefs concerning saving for retirement. To our knowledge there is no published data about retirement savings among Americans in this age group. We try to determine whether a student's retirement savings beliefs and habits can be predicted. We designed a model examining the student's risk-aversion level, financial background, general savings habits, financial literacy and attitudes toward saving. We found that our overall model is predictive of a student's beliefs and habits in regards to saving for retirement. In addition, the student's level of risk-aversion, savings beliefs, and financial literacy were each independently predictive. The findings imply that students should be targeted if we would like to increase the personal savings rate in America. Financial literacy is the key and a personal finance course should be required to help students become aware of the saving options available and the power of saving early.