TY - JOUR
T1 - Impact of financial investment on confidence in a happy future retirement
AU - Cheung, Yan-Leung
AU - Mak, Billy S.C.
AU - Shu, Hao
AU - Tan, Weiqiang
N1 - Publisher Copyright:
© 2023 Elsevier Inc.
PY - 2023/10
Y1 - 2023/10
N2 - The study examines the impact of financial investment on the individual's confidence in a happy future retirement using data from 735 respondents in the Bank Consortium Holding Limited (BCT) Public Opinion Survey on Retirement Happiness in 2017. The result shows that holding the investment portfolio with savings and risky assets positively and significantly correlates with the individual's confidence in a happy future retirement life. This relationship is more pronounced for those with a positive attitude toward life, better financial literacy, and voluntary contribution to the retirement account. The result is robust after using the propensity score matching (PSM) approach, placebo test, alternative regression model, and the independent variables and control for additional variables. Further analysis shows that the positive relationship between holding the investment portfolio and the individual's confidence in a happy future retirement life is not driven by individuals' income, assets, and location. This paper provides empirical evidence to guide citizens' investments and improve the pension system to cope with the aging population in Hong Kong.
AB - The study examines the impact of financial investment on the individual's confidence in a happy future retirement using data from 735 respondents in the Bank Consortium Holding Limited (BCT) Public Opinion Survey on Retirement Happiness in 2017. The result shows that holding the investment portfolio with savings and risky assets positively and significantly correlates with the individual's confidence in a happy future retirement life. This relationship is more pronounced for those with a positive attitude toward life, better financial literacy, and voluntary contribution to the retirement account. The result is robust after using the propensity score matching (PSM) approach, placebo test, alternative regression model, and the independent variables and control for additional variables. Further analysis shows that the positive relationship between holding the investment portfolio and the individual's confidence in a happy future retirement life is not driven by individuals' income, assets, and location. This paper provides empirical evidence to guide citizens' investments and improve the pension system to cope with the aging population in Hong Kong.
KW - Population aging
KW - Confidence in a happy future retirement life
KW - Financial investment
KW - Investment portfolio
KW - Hong Kong
UR - http://www.scopus.com/inward/record.url?scp=85169832468&partnerID=8YFLogxK
U2 - 10.1016/j.irfa.2023.102784
DO - 10.1016/j.irfa.2023.102784
M3 - Journal article
AN - SCOPUS:85169832468
SN - 1057-5219
VL - 89
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
M1 - 102784
ER -