Written By: Y. Lakshmi Malroutu and Jing J. Xiao

Data from the 1989 Survey of Consumer Finance were used to examine the effect of socio- demographic, human capital, work related, and objective variables on perceived adequacy of retirement income of preretirees. A multivariate probit analysis showed that younger respondents, whites, those with incomes between $10,000 and $19,999, females, and self-employed were less likely to perceive their future retirement income to be adequate than otherwise similar households. When subjective variables were added to the analysis, planning to save within 5 years was positively related to preretirees’ perception of having adequate retirement income. KEY WORDS: retirement planning, future financial expectations, perceptions, income adequacy, Survey of Consumer Finance

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