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If you have these personality traits, you may be more at risk of bankruptcy in retirement


Do you have a personality to retire rich – and remain so?

Your personality and other personal traits may have a greater impact on how quickly you spend your retirement savings than factors such as age, marital status, willingness to leave the estate and whether you are still retired, according to a published study in the Monday journal Psychology and Aging .

Two features – conscientiousness (for example, you are organized, accurate, hard-working and careful) and financial self-sufficiency (a sense of resilience and control over your financial situation) – had the strongest direct relationship with the indicator from which people withdrew their savings accounts for retirement. People with these characteristics retreated much more slowly.

Meanwhile, people more open to new experiences (for example, those who are creative, inventive, adventurous and curious); more pleasant (for example, those who are compassionate, caring, warm and helpful); and more neurotic (for example, people who are often nervous, worried, moody and are not calm), more often than others are more likely to withdraw from their retirement savings.

And people who have experienced many negative emotions over the past month – such as anxiety, scared, nervous, frustrated, guilty, embarrassed, bored, hostile, shaky, nervous, sad or worried – were also more likely to retreat at a higher level to judge .

Possible reasons? "Greater neuroticism and negative emotions can lead to impulsive financial behavior and improper investment decisions," Sarah Asebedo, research author and financial planning professor at Texas Tech University, says MarketWatch about these findings. "People with greater agreeableness are usually warm, kind, accommodating and caring, so they can prioritize giving financial support to others (e.g. friends, family, charity organization) than saving money on their accounts."

And he adds: "Research suggests that people with greater openness usually attach less importance to material goods and more to experience, but also show impulsiveness and less cautious money management behavior, which again may result in higher payout ratios."

The study analyzed personality data from over 3,600 people aged 50 or older in the US (average age was 70) and compared it with tax data from the same participants.

Study authors – Asebedo and Christopher Browning, also a professor of financial planning at Texas Tech University – warn that a higher payout ratio is not always bad. "A higher portfolio payout rate is whether it puts a person on the path to running out of funds too early. However, if a higher rate of withdrawals from the wallet does not threaten the depletion of money, it can greatly facilitate life in good condition – said Asebedo in a statement.

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