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Personality Traits Affect Spending Habits in Retirement.

In a study of more than 3,600 people older than age 50 (average age 70), researchers identified certain personality traits associated with spending patterns. Participants were scored on what psychologists call "the big five" personality traits, which include openness to experience, conscientiousness, extroversion, agreeableness, and neuroticism. Researchers found that people with greater conscientiousness, extroversion, and positive feelings of control over their finances withdrew from their retirement portfolios at a lower rate than those with greater openness, agreeableness, neuroticism and negative emotions. The rate at which a person spends his or her retirement savings isn't necessarily bad or good, as long as the individual isn't likely to run out of money too early or is clinging to savings so tightly that quality of life is significantly hampered. The researchers, who published their findings in the American Psychological Association journal Psychology and Aging, suggested that financial planners consider the dominant personality traits of their clients in planning retirement strategies. Likewise, individuals may want to think about their spending habits and tendencies before retirement and plan accordingly.

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Title Annotation:NEWS BRIEFS
Publication:Mind, Mood & Memory
Date:Jan 30, 2020
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