Impact of financial investment on the individual’s confidence of happy retirement life
By Yan-Leung Cheung, Billy S C Mak, Hao Shu & Weiqiang Tan
The study examines the impact of financial investment on the individual’s confidence in happy retirement life using data from 735 respondents in the Bank Consortium Holding Limited (BCT) Public Opinion Survey on Retirement Happiness in 2017. The result shows that holding the investment portfolio with savings and risky assets is positively and significantly correlated with the individual’s confidence of happy retirement life, and this relationship is more pronounced for those who with a positive attitude to life, have better financial literacy and voluntary contribution to the retirement account. The result is robust after using the propensity score matching (PSM) approach, placebo test, alternative regression model and the independent variables, and control for additional variables. Further analysis shows that the positive relationship between holding the investment portfolio and the individual’s confidence of happy retirement life is not driven by individuals’ income, assets and location. This paper provides empirical evidence for guiding citizens’ investments and improving the pension system to cope with the population aging in Hong Kong.
Source: SSRN
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