TY - JOUR
T1 - The Necessary and Sufficient conditions for Retirement Funding Adequacy
T2 - A Fuzzy set analysis
AU - Zeka, Bomikazi
AU - Veri, Francesco
N1 - Funding Information:
The authors would like to express gratitude to Prof. Raechel Johns and Prof. Linda Botterill for reviewing this article. The researchers would also like to thank and acknowledge the The South Africa National Research Foundation (Grant No. 99346) and BANKSETA (Project No. 572) for funding this study. However, these institutions played no role in the design, execution, analysis and interpretation of the data nor did they contribute in the writing up of this paper.
Publisher Copyright:
© 2022, Centre of Sociological Research. All rights reserved.
PY - 2022/3
Y1 - 2022/3
N2 - Although retirement funding adequacy literature has explored perceptions of retirement preparations and savings targets, there remains a lack of understanding of which conditions are necessary and sufficient for it to occur. This study identifies the necessary and sufficient conditions for retirement funding adequacy by examining the extent to which demographic, psychological and behavioural variables predict its occurrence. Within the context of South Africa, fuzzy set qualitative comparative analysis was used to test a complex model and qualify the processes that lead to retirement funding adequacy. The results show that educated women of higher socio-economic status are associated with retirement provisions. Thus, the inclusion and empowerment of women in financial planning activities results in positive retirement outcomes. Furthermore, retirement provisions precede retirement funding adequacy, and financial knowledge is a necessary condition for both retirement provisions and retirement funding adequacy. This research is relevant for financial planners and institutions encouraging individuals to plan and save for retirement in order to reduce the retirement funding adequacy gap experienced by retirees.
AB - Although retirement funding adequacy literature has explored perceptions of retirement preparations and savings targets, there remains a lack of understanding of which conditions are necessary and sufficient for it to occur. This study identifies the necessary and sufficient conditions for retirement funding adequacy by examining the extent to which demographic, psychological and behavioural variables predict its occurrence. Within the context of South Africa, fuzzy set qualitative comparative analysis was used to test a complex model and qualify the processes that lead to retirement funding adequacy. The results show that educated women of higher socio-economic status are associated with retirement provisions. Thus, the inclusion and empowerment of women in financial planning activities results in positive retirement outcomes. Furthermore, retirement provisions precede retirement funding adequacy, and financial knowledge is a necessary condition for both retirement provisions and retirement funding adequacy. This research is relevant for financial planners and institutions encouraging individuals to plan and save for retirement in order to reduce the retirement funding adequacy gap experienced by retirees.
KW - behavioural characteristics
KW - demographics
KW - fsQCA
KW - psychology
KW - retirement funding adequacy
UR - http://www.scopus.com/inward/record.url?scp=85128352505&partnerID=8YFLogxK
U2 - 10.14254/2071-789X.2022/15-1/7
DO - 10.14254/2071-789X.2022/15-1/7
M3 - Article
AN - SCOPUS:85128352505
SN - 2071-789X
VL - 15
SP - 109
EP - 124
JO - Economics and Sociology
JF - Economics and Sociology
IS - 1
ER -