What makes people anxious about life after the age of 65? Evidence from international survey research in Japan,the United States,China, and India

This study investigated the causes of people’s anxieties about life after the age of 65 years, using household data from countries with different social contexts: Japan, the United States, China, and India. This research added contextual aspects to the literature on social security and precautionary savings. An ordered probit model was used to establish the causes of anxiety and a generalized structural equation model was used to check the robustness of the results. This study uncovered three major findings. First, anxiety levels about life at an older age partly depend on people’s views of the future. Second, high financial status lessens people’s anxiety levels only if prices are stable. Third, living with a child, contrary to expectations, does not necessarily lessen people’s concerns about life after 65.     

EMPLOYEE FINANCIAL LITERACY AND RETIREMENT PLAN BEHAVIOR: A CASE STUDY

This article uses administrative data on all active employees of the Federal Reserve (FR) System to examine participation in and contributions to the Thrift Saving Plan, the System's defined contribution (DC) plan. We link to administrative records a unique employee survey of economic/demographic factors including a set of financial literacy questions. Not surprisingly, FR employees are substantially more financially literate than the population at large. Most importantly, financially savvy employees are also most likely to participate in their DC plan. Sophisticated workers contribute three percentage points more of their earnings to the DC plan than do the less knowledgeable, and they hold more equity in their pension accounts. We examine changes in employee plan behavior 1 year after employees completed a Learning Module about retirement planning, and we compare it to baseline patterns. We find that those employees who completed the Learning Module were more likely to start contributing and less likely to have stopped contributing to the DC plan postsurvey. In sum, employer‐provided learning programs are shown to significantly impact employee retirement saving decisions and consistent with a lot of other research, higher levels of financial literacy are found to have a beneficial impact on retirement saving patterns. (JEL J3, H7)     

Financial Credit: Social Work's Role in Empowering Low-Income Families

Social workers interact with families and communities that financially struggle and have credit challenges. Social workers could benefit from increasing their financial literacy to knowledgeably educate, assist, and refer families in financial need. Specifically, knowledge about credit is imperative in today's economy. This article provides information about financial credit, financial literacy efforts, and the basics about credit, credit reports, and credit scores. Discussion is centered on the roles social workers could play in assisting families to build credit and make sound financial decisions. Areas for policy advocacy about financial literacy and credit are delineated.     

Affordable Financial Services and Credit for the Poor

Abstract

The financial services and sources of credit available to poor families affect the rate at which families can be financially empowered through building assets. This paper provides background information on financial services, including credit sources, which are available for low-income people and communities. Also discussed are policies affecting financial markets and promising innovations in delivering affordable financial services to low-income families. Implications for social work education, practice and advocacy are discussed.     

Lay actions in the face of crisis—Swedish citizens’ actions in response to the global financial crisis of 2008

This study goes beyond attitudes and behavioral indications as response to risk perceptions and focuses on actual behavior of laypeople. We report the results from a survey, conducted among a sample of Swedish citizens in the spring of 2009, looking at lay actions as responses to the financial crisis of 2008.In total, 3138 respondents were asked whether they had done something to protect their money during the recent financial crisis or not. The total sample, 1053 respondents, was divided into two comparable groups and a binary logistic regression tested a model with nine factors hypothesized to be predicting the choice to act or not as a response to the financial crisis. Among the eight factors predicting likelihood to act were gender, age, education, ethnicity, possession of assets affected of the financial crisis, worrying about the everyday household finances, the perception of others’ actions, and importance put on being knowledgeable and up-dated about financial matters. The ninth factor—respondents’ perception of the crisis to be a greater threat to the U.S. and global economy than to their own personal finances—did not contribute significantly to the model.A second aim of the study was to determine whether any individuals acted rashly and, if so, whether this group differed in any statistically significant way from the group of individuals that acted in a more financially circumspectly manner. In the group of individuals that acted rashly there is a higher propensity of: individuals who do not think they have assets affected by the crisis: individuals who have a lower level of education; and individuals who consider it important to be knowledgeable and up-to-date about financial matters. It should be of interest to policymakers and researchers to further explore features of this group of laypeople because it is the most important target group for consumer information and protection.     

The effect of disability on the net worth of elderly people

As demographic shifts make the Social Security program financially vulnerable, the responsibility for income security in old age will shift from the government to elderly people. In this changing environment, the accumulation of wealth will be a crucial issue because wealth holders can draw income from assets, which can supplement retirement income. Thus, wealth (or net worth) is a proximate indicator of economic well-being of the elderly. This article presents the findings of a study of the net worth of elderly people with disabilities. The major findings were that a smaller proportion of elderly people with disabilities has assets of any type compared with elderly people with no disability; the dollar value of each type of asset is smaller among elderly people with disabilities than among elderly people with no disability; and the net worth of people with disabilities is smaller than that of elderly people with no disability even after other variables were controlled.     

Economic Well-being and Ageing: The Need for Financial Education for Social Workers

This paper explores the importance of financial education for social workers who are often working with individuals and families who are financially vulnerable and who frequently have little financial knowledge. This may be particularly relevant in light of the recent global recession and the negative impact this has had for many in terms of increased living costs and decreased income. Older people may be particularly vulnerable to the economic fluctuations caused by the recession, yet they may be disadvantaged further by poor understanding of the impact of finances on well-being from social care agencies, and a paucity of information and advice to enable them to develop improved financial literacy. This may be compounded further by increasingly strict eligibility criteria, which restrict access to services, leading to increasing numbers of older people who need to fund their own care. The objective of this paper is to highlight the need for students and practitioners to develop their own financial literacy skills so as to better enable them to support those that they work with. The discussion considers the usefulness of the ‘asset vulnerability framework’ devised by Moser in assessing the economic well-being of older people and its applicability within social work education and practice.     

The Financial Literacy of Social Work Students

The financial literacy of social work students has become the focus of curriculum development and research, but no study to date has attempted to assess the financial knowledge possessed by social work students. This study addressed that gap by assessing the level of objective financial knowledge reported by social work student respondents (N?=?1,506) to an Internet-based survey. Results indicated that the majority of social work student respondents scored more than 70% correct on a 48-item measure of financial literacy. Multiple regression analysis explained 33.7% of the variance and suggested that the dominant pathway to acquiring objective financial knowledge is through personal experience. Accordingly, financial education programs for social work students may be most appropriate for traditional undergraduates.     

The Coming Failure of Mission-Oriented Social Research

Abstract

An effort has been made to examine systematically the effects of various types of status inconsistencies and perceived stress on support for radical political parties within various class and age categories in order to clarify ambiguities in previous research. In general, two broad hypotheses have been suggested: that stressful life situations are more likely to lead to radical support among young people since they are less committed to the political system and traditional political parties and are more open to change; and that stressful life situations are more likely to lead to radical political support among older people since they have less hope for their situation to improve. To test these hypotheses, we examine support for the separatist Parti Quebecois using a 1970 survey with 1587 francophone respondents from the province of Quebec. Findings from multiple regression suggest the following: political alienation is more likely to PQ lead to support among those under 35; status inconsistency is more likely to lead to PQ support among those in mid-life (36–59); and worry about financial future is the strongest predictor of support among those over 60. The findings confirm expectations about age differences in the effects of status concerns on radical political support.     

Perceived Impact of Economic Downturn on Worry Experienced by Elderly Chinese Immigrants in Canada

The economic downturn impacts older immigrants, who may not have the financial security or resources to mitigate the effects. This project examines the effects of the economic downturn on elderly Chinese immigrants using a survey gauging the effects of the recession on their life and their worry about the economy. The participants were aware of the recession and they spent less and halted investments. Their economic situation seemed to have worsened or remained unchanged. Gender, education level, self-rated financial adequacy, and worry about family’s quality of life were significant correlates of worry. Those with a higher level of worry were female, had higher education, and were less financially adequate. Worry about family’s quality of life is the most important correlate.     

The language of money

ABSTRACT

This article examines the relationship of personal finance in a narrative-based treatment strategy as applied to couples. It builds on behavioral economics as the undergirding of an approach to financial literacy. By matching the treatment strategy with the stages of readiness for change, couples are able to gradually adopt a financially prudent lifestyle. The authors argue that the couples’ conflicts about personal financial behaviors are a proxy of underlying problems in intimacy. The use of a narrative-based theory addresses how personal finances are used to control relationships.     

Good personal finances or a strong social capital—on different life conditions of importance for an active life when becoming alone in old age

Becoming alone in old age can be a decisive life event that brings major changes depending on various causes as health status, financial resources, family situation, and available welfare services. This article discusses the situation of older people in Sweden who have transitioned from a two-person to single-person household in recent years and what impact this might have on their everyday lives. Through in-depth interviews with 18 older people, age 67–90, their experiences about life conditions and opportunities were examined. Findings showed large differences between the men and women. They all tried to live as they always had done and they used the same personal life strategies that they always had. But the men could live as before on their own financial merits, while the women needed assistance from children, grandchildren and the welfare system. Transportation options were central and clearly related to both private economy and social services available. Shortcomings in the welfare state's way of caring for the elderly were clearly uncovered. The gap between social policy promises of opportunities for autonomy and independence to live an active life in old age and the everyday reality for older people still seems to be wide.     

Social Capital Across the Life Course: Age and Gendered Patterns of Network Resources1

Despite increasing research interest in network dynamics and cumulative advantage/disadvantage processes, little remains known about how social capital varies across the life course. While some researchers suggest that social capital increases with age and others argue the opposite, this study tests these contradictory assertions by analyzing multiple indicators of social capital from a nationally representative data set on working‐age U.S. respondents. The findings reveal evidence of both social capital accumulation and decline. Social resources from occupational contacts tend to increase with age, but eventually level off among older respondents. Changes in voluntary memberships follow a similar pattern. However, daily social interaction is negatively associated with age. Overall, the results suggest that social capital embedded in occupational networks tends to accumulate across the career, even in the face of a general decline in sociability. The study also uncovers gender differences in these social capital trajectories that are linked to the distinct life experiences of men and women.     

Protecting Older People From Burglary: Prevalence of Security Devices in the Homes of Older Adults in Perth,Western Australia

ABSTRACT

Fear restricts the activity of older adults, potentially leading to social isolation and unhealthy life styles. Consequently, this population remains a priority for home security research and intervention. One option is to increase home security by installing security devices. However, little is known about how older adults protect their homes. In this study, 5,582 community-dwelling older people completed a cross-sectional survey. The survey was able to document the prevalence of security measures taken by older adults. More than 70% of the respondents had security screens and key-operated deadlocks and 148 (2.7%) respondents reported no security features. Respondents living alone had the lowest prevalence of home security devices. Female living alone protected their home differently from male living alone by installing different security devices. Logistic regression analysis indicated that older adults living in detached houses feel particularly vulnerable to burglary (p < .001). These survey findings have practical implication for burglary prevention.     

Exploring the Nexus of Nonprofit Financial Stability and Financial Growth

Taking a unified approach to studying nonprofit financial health, this research tackles a key question that has remained unexplored in the literature: “What lies at the intersection of the two key dimensions of financial health–financial stability and financial growth?” Specifically, we identify and compare nonprofits that exhibit high levels of financial stability and growth (high financially performing) to those that exhibit low levels (low financially performing)? Overall, we find that high financial performers (HFPs) tend to be older and larger organizations (in terms of unrestricted net assets and total revenue). HFPs are also more likely to report capital assets, and report high levels of compensation. Finally, HFPs tend to contain their overhead spending by exercising efficiency by investing in talented officers (paying more than the rest), but limiting the share of officer compensation, administrative, and fundraising expenses, as a percentage of total expenses. The results of the study should be informative to stakeholders attempting to understand the profile of an organization that is successfully able to achieve both capacity growth and financial stability.     

Children as risky investment

This article provides a theoretical model to explain endogenous fertility and use the panel data of 169 countries to analyze the extent to which fertility behaviors are influenced by financial development and social security tax. A negative effect of financial development on fertility supports the evidence that people in countries with lower levels of financial development tend to have more children. Those people in countries, where there is limited access to other risky investments, tend to have more children. In addition, those who are poor are more likely to have more children, which will lower their overall welfare, and further reduce their investment in capital markets. Social security tax also has a negative impact on fertility behaviors.     

Intergenerational Transfers to Adult Children in Europe: Do Social Policies Matter?

Understanding the role of social policies in intergenerational transfers from old to young people is especially important in times of population aging. This paper focuses on the influences of social expenditures and social services on financial support and on practical help from older parents to their adult children based on the first two waves from the Survey of Health, Ageing and Retirement in Europe (SHARE, N = 60,250 dyads from 13 European countries). Multilevel models showed that social policy plays an important role for intergenerational transfer patterns: The more public assistance was provided to citizens, the more likely parents supported their adult children financially and practically, but this support was less intense in terms of money and time given. Thus, the analyses support the specialization hypothesis that posits a division of labor between family and state for downward intergenerational transfers.     

Dependency and interdependency: the incomes of informal carers and the impact of social security

Consideration of the income and social security needs of informal carers has remained conspicuously absent from discussions about 'community care'. Similarly, carers have been more or less invisible in the development of social security policies. This paper reports on a study of the financial circumstances of a sample of working age carers, who were living with and providing substantial amounts of help and support to a disabled person in the same household. The study highlights first, the substantial work-related costs incurred by carers with full time employment; and second the financial dependency of carers without full time earnings, on their spouse, sibling or on the person being cared for. The implications of these findings are discussed in the light of recent developments in social security policies.     

Financial satisfaction over the life course: The influence of assets and liabilities

Various studies have shown that financial satisfaction is, among other domains, an important determinant of overall individual well-being. Contrary to the common belief that financial satisfaction mainly depends on an individual’s income, evidence for the US indicates that life course financial satisfaction steadily increases from the thirties onwards, whereas life course income shows an inverted U-pattern with a peak at midlife. To judge from other studies in the US and Norway, this pattern for financial satisfaction is not unique. The aim of the present analysis is to explore the determinants of this life course financial satisfaction pattern, taking into account not only income but also the possible impact of assets and liabilities. The analysis suggests that while income has the expected positive relation, increasing financial satisfaction at older age can be partly explained by decreases in liabilities and increases in financial assets, and that assets and liabilities considered separately provide a better explanation than net wealth. In addition, reduction in the dependency burden at old age leads to increased financial satisfaction while the deterioration of health has a negative impact. The data are from the second and third waves of the US National Survey of Families and Households.     

Elementary Preservice Teachers’ and Teacher Educators’ Perceptions of Financial Literacy Education

The authors conducted an online survey of elementary teacher education programs within a large midwestern state to assess preservice teachers’ and teacher educators’ beliefs about and preparedness to teach financial literacy. Very few preservice teachers had meaningful experiences with personal finance in high school, college, or personal decision making. No teacher educators reported ever teaching financial literacy in their higher education roles. Only 13% of teacher educators and 25% of preservice teachers thought that it was very important to teach financial literacy in elementary education. Most teacher education faculty and preservice teachers reported that they were not well qualified to use state economics standards or the JumpStart standards for financial literacy. Preservice teachers were more confident in meeting financial literacy standards than teacher educators. Both preservice teachers and teacher educators expressed openness to collaborating with other faculty members, members of the financial service industry, and parents to teach financial literacy. Follow-up phone interviews affirmed that elementary preservice teachers and teacher educators value social studies education (and financial literacy) less than reading and mathematics education. Qualitative results also suggest that elementary preservice teachers and teacher educators would like more easily accessible resources for teaching financial literacy.