Abstract
Nations in Europe have been developing rapidly since the formation of the European Union (EU), not only socially and demographically,
but economically as well. One question a number of countries will face during this period of structural transition will be
how (and how well) they are able to support their citizens in old age. A related question involves whether individuals worry
about their financial future in retirement, and the extent to which they take active steps to save in order to ensure an adequate
standard of living. In this study, we analyze data from the third wave of the European Social Survey, which represents 21,416
working adults from 23 countries in Europe. We used multilevel modeling to focus on the explanatory factors that underlie
individual and country-level effects in worry about future retirement income and saving behavior. Findings suggest that once
individual-level dimensions are taken into account, country-level predictors explain appreciable variance in worry, but not
saving practices. Moreover, we found that retirement income worries are more severe in countries with a strong projected increase
in future population aging and a high level of income inequality. Finally, pension age reforms were not found to appreciably
affect retirement income worries. Results of the study are discussed in terms of not only the individual difference dimensions
that precipitate future income worry and saving, but also ways in which macro-level policy initiatives could potentially alleviate
some of the worries of European citizens.
but economically as well. One question a number of countries will face during this period of structural transition will be
how (and how well) they are able to support their citizens in old age. A related question involves whether individuals worry
about their financial future in retirement, and the extent to which they take active steps to save in order to ensure an adequate
standard of living. In this study, we analyze data from the third wave of the European Social Survey, which represents 21,416
working adults from 23 countries in Europe. We used multilevel modeling to focus on the explanatory factors that underlie
individual and country-level effects in worry about future retirement income and saving behavior. Findings suggest that once
individual-level dimensions are taken into account, country-level predictors explain appreciable variance in worry, but not
saving practices. Moreover, we found that retirement income worries are more severe in countries with a strong projected increase
in future population aging and a high level of income inequality. Finally, pension age reforms were not found to appreciably
affect retirement income worries. Results of the study are discussed in terms of not only the individual difference dimensions
that precipitate future income worry and saving, but also ways in which macro-level policy initiatives could potentially alleviate
some of the worries of European citizens.
- Content Type Journal Article
- DOI 10.1007/s10433-010-0167-z
- Authors
- Douglas A. Hershey, Department of Psychology, Oklahoma State University, 116 North Murray Hall, Stillwater OK, 74078, USA
- Kène Henkens, Department of Sociology, Netherlands Interdisciplinary Demographic Institute (NIDI); Tilburg University, P.O. Box 11650, 2502 AR The Hague, The Netherlands
- Hendrik P. van Dalen, Department of Economics and CentER, Netherlands Interdisciplinary Demographic Institute (NIDI); Tilburg University, P.O. Box 11650, 2502 AR The Hague, The Netherlands
- Journal European Journal of Ageing
- Online ISSN 1613-9380
- Print ISSN 1613-9372