Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement
Subjective financial scarcity poses a significant concern that negatively impacts individuals' wellbeing. With attention tunneling to present financial worries, individuals might neglect their future financial situation, even if they objectively have enough funds to save. Such behavior can cont...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2025-04-01
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| Series: | Frontiers in Behavioral Economics |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/frbhe.2025.1379577/full |
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| author | Kristjan Pulk Thomas Post Thomas Post |
| author_facet | Kristjan Pulk Thomas Post Thomas Post |
| author_sort | Kristjan Pulk |
| collection | DOAJ |
| description | Subjective financial scarcity poses a significant concern that negatively impacts individuals' wellbeing. With attention tunneling to present financial worries, individuals might neglect their future financial situation, even if they objectively have enough funds to save. Such behavior can contribute to a deficient financial situation in retirement. To assess the impact of subjective financial scarcity on the intention to save for retirement, we conduct an online vignette survey experiment (n = 134). Using the two-limit tobit model, we find that subjective financial scarcity leads to lower retirement savings rate. We contribute to the literature by testing theoretical predictions of scarcity theory, providing experimental evidence for the myopic financial behavior orientation of retirement saving rates. We offer practical implications for policymakers, suggesting that interventions that promote saving for retirement should be designed with subjective financial scarcity and stress reduction messages in mind. |
| format | Article |
| id | doaj-art-857efec306c04f098b0e08cd2733eac1 |
| institution | OA Journals |
| issn | 2813-5296 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Behavioral Economics |
| spelling | doaj-art-857efec306c04f098b0e08cd2733eac12025-08-20T02:18:38ZengFrontiers Media S.A.Frontiers in Behavioral Economics2813-52962025-04-01410.3389/frbhe.2025.13795771379577Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirementKristjan Pulk0Thomas Post1Thomas Post2School of Economics and Business Administration, University of Tartu, Tartu, EstoniaDepartment of Finance, School of Business and Economics, Maastricht University, Maastricht, NetherlandsNetwork for Studies on Pensions, Aging and Retirement (Netspar), Tilburg, NetherlandsSubjective financial scarcity poses a significant concern that negatively impacts individuals' wellbeing. With attention tunneling to present financial worries, individuals might neglect their future financial situation, even if they objectively have enough funds to save. Such behavior can contribute to a deficient financial situation in retirement. To assess the impact of subjective financial scarcity on the intention to save for retirement, we conduct an online vignette survey experiment (n = 134). Using the two-limit tobit model, we find that subjective financial scarcity leads to lower retirement savings rate. We contribute to the literature by testing theoretical predictions of scarcity theory, providing experimental evidence for the myopic financial behavior orientation of retirement saving rates. We offer practical implications for policymakers, suggesting that interventions that promote saving for retirement should be designed with subjective financial scarcity and stress reduction messages in mind.https://www.frontiersin.org/articles/10.3389/frbhe.2025.1379577/fullfinancial scarcityretirementsaving behaviorexperimentpension |
| spellingShingle | Kristjan Pulk Thomas Post Thomas Post Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement Frontiers in Behavioral Economics financial scarcity retirement saving behavior experiment pension |
| title | Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement |
| title_full | Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement |
| title_fullStr | Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement |
| title_full_unstemmed | Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement |
| title_short | Subjective financial scarcity today = objective financial scarcity in the future? The impact of subjective financial scarcity on saving for retirement |
| title_sort | subjective financial scarcity today objective financial scarcity in the future the impact of subjective financial scarcity on saving for retirement |
| topic | financial scarcity retirement saving behavior experiment pension |
| url | https://www.frontiersin.org/articles/10.3389/frbhe.2025.1379577/full |
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