Title

Decision Making Clusters in Retirement Savings: Preliminary Findings

Document Type

Journal Article

Publisher

The Centre for Labour Market Research

Faculty

Computing, Health and Science

School

Psychology and Social Science

RAS ID

4301

Comments

This article was originally published as: Speelman, C. P., Clark-Murphy, M. C., & Gerrans, P. A. (2007). Decision making clusters in retirement savings: Preliminary findings. Australian Journal of Labour Economics, 10(2), 115-127. Original article available here

Abstract

The aim of the present study was to explore whether identifiable member clusters exist in retirement savings decisions by considering the investment choice history of the members of four large Australian retirement savings funds. We used a two-step cluster analysis to examine whether well-defined subgroups exist as identified by their investment choices and member demographics. Funds were tested individually and collectively using a range of variables. Distinct groups were found, varying along gender and age lines. There were also clear distinctions between the groups in terms of the risk of the investments they chose. Future work is discussed, including the refinement of variables selected.