62
Journal of Personal Finance
Race, Trust, and Retirement Decisions Terrance K. Martin Jr., Ph.D., Assistant Professor, Department of Economics and Finance, University of Texas-Pan American Michael Finke, Ph.D., Professor and Director of Retirement Planning and Living, Department of Personal Financial Planning, Texas Tech University Philip Gibson, Ph.D., Assistant Professor, Department of Accounting Finance and Economics, Winthrop University
Using the 2008 National Longitudinal Survey of Youth, this study investigates whether racial differences in trust can explain the decision to consult a financial planner and the variation in accumulated retirement wealth. Blacks and Hispanics are more likely to report having low trust compared to non-black, non-Hispanic respondents. The results provide evidence that low trust has a greater impact among blacks than non-black, non-Hispanic respondents. Low trust has a weaker impact among Hispanics on the decision to consult a financial planner and on the accumulation of retirement wealth. There is no evidence that hiring a financial planner has a larger impact on retirement wealth among blacks or Hispanics than it does among non-black, non-Hispanic households.
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