Research On The Relations Between Personality Traits,Financial Literac Yand Retirement Planning

Retirement planning runs through people's career and the rest of their life after retirement.The ultimate goal is to realize the comfortable state when people are old.People's behavior choice of retirement planning is decided by two factors,one is from personality traits,the other is from financial literacy.Personality traits refer to the psychological responses people will make in different situations,which are the relatively stable psychological characteristics generated from the effects of gene and environment.Financial literacy refers to the degree of people's understanding of financial markets and financial knowledge,which is the objective knowledge and ability which are formed when people accept financial education in a long time.The subjective psychological characteristics and the objective financial literacy together determine whether people will choose active retirement planning.Firstly,based on the existing research and the relevant economic theory,this paper put forward the hypothesis about the relations between personality traits,financial literacy and retirement planning and the underlying mechanism of such effects.Secondly,using the 2012 consumption financial data of urban household surveyed by Tsinghua university,the paper studied the "big five" personality effects on retirement planning through linear regression.Thirdly,this paper studied the mediating effect of financial literacy by building a model of the effect of mediation to validate the proposed hypotheses.This paper found that only "Dutifulness" under the dimension of"Conscientiousness"(namely "Dutifulness-conscientiousness")and "Trust" under the dimension of "Agreeable"(namely "Trust-agreeable)have a significant impact on retirement planning and financial literacy(including subjective and objective financial literacy).Financial literacy has significant influence on people's retirement planning.Personality traits are stable,they can affect retirement planning behavior through the mediating effect of financial literacy."Dutifulness-conscientiousness"has an impact on retirement planning through the full mediating effect of financial literacy(including subjective and objective financial literacy)."Trust-agreeable" has an impact on retirement planning through the partial mediating effect of financial literacy(including subjective and objective financial literacy).Therefore,focusing on personality traits and strengthening financial education are meaningful for society and individual old-age support securities.