Examination of objective and subjective financial factors in predicting financial and retirement satisfaction in retirees

The present study examined predictors of retirement and financial satisfaction and contributed to existing literature by examining the incremental prediction offered by subjective estimates of financial resources and the impact of the Recession over more traditional objective measures. We hypothesized that objective financial resources, subjective financial resources, and the economic recession would predict retirement satisfaction and financial satisfaction, but that subjective estimates of financial well-being would be superior predictors of the dependent variables as compared to objective indices of financial resources. A total of 245 retirees participated in the study, and results suggested that subjective and objective measures of finances were relatively independent. Further, consistent with hypotheses, most of the subjective financial measures provided significant incremental prediction of retirement and financial post-retirement satisfaction over that offered by objective financial indices. Subjective estimates of the impact of the Recession significantly predicted financial satisfaction post-retirement. Practical implications, limitations, and suggestions for future research are discussed.