Malroutu, 1995

Malroutu, Y. L. & Xiao, J. J.
(1995). Perceived adequacy of retirement income. Financial Counseling and
, 6, 17-23. 

Perceived Adequacy of Retirement Income

Y. Lakshmi Malroutu (1) and Jing J. Xiao (2)

Data from the 1989 Survey of
Consumer Finance were used to examine the effect of socio-demographic, human
capital, work related, and objective variables on perceived adequacy of
retirement income of preretirees. A multivariate probit analysis showed that
younger respondents, whites, those with incomes between $10,000 and $19,999,
females, and self-employed were less likely to perceive their future retirement
income to be adequate than otherwise similar households. When subjective
variables were added to the analysis, planning to save within 5 years was
positively related to preretirees’ perception of having adequate retirement


 Key Words: retirement planning, future financial
expectations, perceptions, income adequacy,

Survey of Consumer Finance


1. Y. Lakshmi Malroutu, Assistant Professor, Consumer Studies, Queens College,
City University of New York, 65-30 Kissena Blvd., Flushing, NY 11367. Phone:
(718) 997-4159. E-Mail:

2. Jing J. Xiao, Assistant Professor, Consumer Affairs Program, College of
Human Science and Service, University of Rhode Island, Kingston, RI 02881.
Phone: (401) 874-4036. Fax: (401) 874-2581. E-mail:

* The authors wish to thank three anonymous reviewers and the editor for

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