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If you have these personality traits, you may be at greater risk of bankruptcy on retirement.



Do you have the personality to retire rich – and stay that way?

Your personality and other personal characteristics can have a greater impact on how quickly you spend your retirement savings than factors such as age, marital status, desire to leave an inheritance, and whether you continue working during retirement, according to a published study. Monday in the journal Psychology and Aging.

Two characteristics – awareness (for example, you're organized, meticulous, hardworking and cautious) and financial self-efficacy (which is a sense of resilience and control over financial situations) – had the strongest direct relationship to the rate at which people withdrew. your retirement savings accounts. People with these characteristics have retreated at a much slower rate.

Meanwhile, people more open to new experiences (eg, creative, imaginative, adventurous and curious); most enjoyable (for example, those who are friendly, attentive, warm and helpful); and more neurotic (for example, people who are often nervous, worried, moody, and not calm) were more likely than others to withdraw their retirement savings at a higher rate.

And people who experienced many negative emotions last month – such as being scared, scared, upset, frustrated, guilty, embarrassed, bored, hostile, nervous, nervous, nervous, sad or distressed – were also more likely to withdraw rate.

The possible reasons? "Greater neuroticism and negative emotions can result in impulsive financial behavior and underinvestment decisions," said Sarah Asebedo, study author and professor of financial planning at Texas Tech University, MarketWatch about these findings. "Those who are most agreeable tend to be warm, friendly, welcoming and caring and therefore may prioritize financial support to others (eg friends, family, charity) rather than preserving money in their accounts."

He adds: "Research suggests that those with greater openness tend to value less material goods and more experience, but also show impulsiveness and less prudent money management behaviors, which may again result in higher withdrawal rates."

The study analyzed personality data from more than 3,600 people in the US aged 50 and older (average age 70) and combined this with tax data from the same participants.

The study's authors – Asebedo and Christopher Browning, also a professor of financial planning at Texas Tech University – warn that a higher withdrawal rate is not always a bad thing. “A higher withdrawal rate is worrying if it puts the individual in the path of running out of money too soon. However, if the higher withdrawal rate is not in danger of running out of money, it may well facilitate a well-lived life, ”Asebedo said in a statement.


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