Life Cycle and Retirement Choices

Abstract: The life cycle is used to explain the long-term motivation for retirement and understand people’s financial behaviour as they grow old. This study aims to analyze how the life cycle affects the retirement choices in Brazil. Data collection consisted of a survey targeting Brazilian adults. The statistical methods included descriptive measures, correlational analysis, as well as tests of means and proportions. Responses revealed that the concern about social security depends on age, which is a relevant explanatory variable, with older individuals tending to show a more forward-looking behaviour. By suggesting an interface between behavioural sciences and public policies, this study points out that governments should both keep track of the citizen’s behavioural aspects and promote educational activities oriented to raise awareness of the need to both avoid low savings toward the end of the life cycle and save up for retirement as early as possible.

Key words: life cycle; intertemporal choices; retirement

         JEL codes: J1, J17