COVID-19 Labor Market Shocks and Withdrawals From Retirement Accounts: Understanding the Moderating Role of Financial Knowledge

IF 2.5 3区经济学 Q3 BUSINESS

Journal of Consumer Affairs Pub Date : 2025-02-04 DOI:10.1111/joca.12616

Sunwoo Lee, Kyoung Tae Kim, Sherman D. Hanna

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引用次数: 0

Abstract

We explored the relationship between COVID-19 labor market shocks and the likelihood of hardship withdrawals or plan loans from retirement accounts, which could significantly impact workers' retirement savings. We found that about 14% of working-age respondents took a hardship withdrawal or plan loan. Those reporting a COVID-19 labor market shock had odds of a hardship withdrawal as much as 3.8 times as high as otherwise comparable respondents who did not have a shock. Additionally, we found that the relationship to a COVID-19-related labor shock was moderated by the objective and subjective financial knowledge of individuals, suggesting a potential role for financial education in alleviating retirement risks. A notable finding is that respondents exhibiting financial knowledge overconfidence were more likely to take a plan loan or a hardship withdrawal than those with appropriate levels of confidence or low levels of confidence. This study offers important insights for policymakers, educators, and practitioners.

查看原文本刊更多论文

2019冠状病毒病劳动力市场冲击和退休账户提款：理解金融知识的调节作用

我们探讨了COVID-19劳动力市场冲击与退休账户中困难提取或计划贷款的可能性之间的关系，这可能会对工人的退休储蓄产生重大影响。我们发现，大约14%的工作年龄的受访者采取了困难提取或计划贷款。那些报告COVID-19劳动力市场冲击的人，困难退出的几率是没有受到冲击的其他可比受访者的3.8倍。此外，我们发现与covid -19相关的分娩休克的关系被个人的客观和主观金融知识所调节，这表明金融教育在减轻退休风险方面具有潜在作用。一个值得注意的发现是，表现出金融知识过度自信的受访者比那些有适当信心水平或低信心水平的受访者更有可能采取计划贷款或困难取款。这项研究为政策制定者、教育工作者和实践者提供了重要的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Consumer Affairs Multiple-

CiteScore

4.60

自引率

17.90%

发文量

期刊介绍： The ISI impact score of Journal of Consumer Affairs now places it among the leading business journals and one of the top handful of marketing- related publications. The immediacy index score, showing how swiftly the published studies are cited or applied in other publications, places JCA seventh of those same 77 journals. More importantly, in these difficult economic times, JCA is the leading journal whose focus for over four decades has been on the interests of consumers in the marketplace. With the journal"s origins in the consumer movement and consumer protection concerns, the focus for papers in terms of both research questions and implications must involve the consumer"s interest and topics must be addressed from the consumers point of view.