Impact of financial investment on confidence in a happy future retirement

Yan-Leung Cheung, Billy S.C. Mak, Hao Shu*, Weiqiang Tan*

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

2 Citations (Scopus)

Abstract

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.

Original languageEnglish
Article number102784
JournalInternational Review of Financial Analysis
Volume89
Early online dateJun 2023
DOIs
Publication statusPublished - Oct 2023

Scopus Subject Areas

  • Finance
  • Economics and Econometrics

User-Defined Keywords

  • Population aging
  • Confidence in a happy future retirement life
  • Financial investment
  • Investment portfolio
  • Hong Kong

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