Time Preference, Delay of Gratification and Private Pension Decision

Abstract

The purpose of this study is to examine how individuals’ time preferences and their delay of gratification skills affect their tendency to participate in individual pension schemes. In the study addressing the time preference construct, it is demonstrated that the likelihood to participate in private pension system increases as individuals dispositionally focused more on the future time. In addition, a significant relationship between marital status and having an individual pension plan was showed. Furthermore, when the delay of gratification skills of individuals is examined, a significant relationship between saving money as a child and saving as an adult with disposable income was found. However, there was no significant difference in the approach towards the private pension system of participants who did and did not save money during their childhood.