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Canadian Retirement Planning Behavior: How Reliance on a Government Pension Relates to Pre-Retirement Savings and Planning Behaviours Cover

Canadian Retirement Planning Behavior: How Reliance on a Government Pension Relates to Pre-Retirement Savings and Planning Behaviours

Open Access
|Mar 2024

Figures & Tables

Average Marginal Effects from Probit

Model 1 (Voluntary Savings)Model 2 (Knows Retirement Needs)
Variable (Reference Group)AMESEAMESE
Government pension reliance (Relies on other source for retirement income)-0.195***0.022-.119***0.023
Objective financial knowledge score-0.00020.0010.006***0.001
Subjective financial knowledge (Not very knowledgeable)
Fairly knowledgeable0..064**0.0240.151***0.027
Knowledgeable0..091***0.0250.313***0.029
Very knowledgeable0.069*0.0330.408***0.035
Demographics
Age (18-24)
25-340.0720.0470.0280.052
35-440.108**0.0480.0730.052
45-540.112**0.0470.128*0.052
55-640.141***0.0490.242***0.055
65 and up0.152**0.0580.245***0.066
Sex (Male)0.0310.017-0.0270.018
Born in Canada (No)0.0330.0200.0010.022
Indigenous (No)0.0080.0310.0130.039
Marital status (Married)
Living with partner-0.0420.024-0.0140.026
Separated-0.0140.0410.0670.048
Divorced-0.0070.032-0.0240.042
Widowed0.100*0.0480.1160.071
Single0.0380.0230.0250.028
Financially dependent children (0)
One or more-0.0270.019-0.0280.020
Socioeconomics
Household income ($0 to less than $20,000)
$20,000 to less than $40,0000.0290.0500.0440.048
$40,000 to less than $60,0000.104*0.0510.0610.049
$60,000 to less than $80,0000.213***0.0510.104*0.050
$80,000 to less than $100,0000.188**0.0560.133*0.054
$100,000 to less than $150,0000.265***0.0530.164**0.053
$150,000 to less than $200,0000.313***0.0560.260***0.056
$200,000 or more0.307***0.0570.308***0.058
Education (Less than high school)
High school diploma or equivalent0.0380.0420.0090.045
Some college or university without diploma0.0040.0450.0480.051
College diploma or certificate0.0180.0420.0060.046
University undergraduate degree0.0500.042-0.0110.045
University graduate degree0.0480.043-0.0170.047
Employment (Full-time)
Part-time-0.087**0.0260.0190.030
Self-employed-0.162***0.027-0.0080.026
Not working-0.204***0.030-0.0230.031
Homeownership (Owns home)
Does not own home0.038*0.0200.0380.023
Student Loans (Has student loans)
Does not have student loans-0.072**0.026-0.0340.031

Descriptive Statistics

Variable 1MeanStd Dev
Primary retirement income source
Not government0.6680.471
Government0.3320.471
Objective financial knowledge score20.4156.834
Subjective financial knowledge
Not very knowledgeable0.1920.394
Fairly knowledgeable0.4340.496
Knowledgeable0.2660.442
Very knowledgeable0.1070.310
Demographics
Age
18-240.0790.270
25-340.1890.392
35-440.2090.407
45-540.2680.443
55-640.2050.404
65 and up0.0500.217
Sex
Male0.5240.499
Female0.4760.499
Born outside Canada0.1950.396
Born in Canada0.8050.396
Non-Indigenous0.9270.260
Indigenous0.0730.260
Marital status
Married0.4620.499
Living with partner0.1340.341
Separated0.0260.158
Divorced0.0530.224
Widowed0.0150.123
Single0.3100.463
Financially dependent children
No children0.6130.487
At least one child0.3870.487
Socioeconomics
Household income
$0 to less than $20,0000.1390.346
$20,000 to less than $40,0000.1370.344
$40,000 to less than $60,0000.1410.348
$60,000 to less than $80,0000.1170.321
$80,000 to less than $100,0000.1170.322
$100,000 to less than $150,0000.1890.391
$150,000 to less than $200,0000.0880.283
$200,000 or more0.0730.261
Education
Less than high school0.0480.215
High school diploma or equivalent0.1980.398
Some college or university without diploma0.1000.300
College diploma or certificate0.2220.416
University undergraduate degree0.2320.422
University graduate degree0.2000.400
Employment
Full-time0.5230.500
Part-time0.1310.337
Self-employed0.1600.366
Not working0.1870.390
Homeownership
Owns home0.3470.476
Does not own home0.6530.476
Student loans
Has student loans0.8800.325
Does not have student loans0.1200.325
DOI: https://doi.org/10.2478/fprj-2023-0001 | Journal eISSN: 2206-1355 | Journal ISSN: 2206-1347
Language: English
Page range: 1 - 18
Published on: Mar 15, 2024
Published by: Financial Advice Association of Australia
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year
Keywords:

© 2024 Tanya M. Staples, Ashlyn Rollins-Koons, Gregory J. Anderson, Blake Gray, published by Financial Advice Association of Australia
This work is licensed under the Creative Commons Attribution 4.0 License.