The effect of attitudes regarding retirement on pension savings

Ravit Rubinstein-Levi, Haim Kedar-Levy

Research output: Contribution to journalArticlepeer-review


Changes in most western countries' pension systems have shifted the responsibility for pension savings from governments to individuals. However, individuals are continuing to avoid making decisions regarding their pension savings, partially due to financial illiteracy as well as reluctance to deal with aging. The outcome is wide-ranging poverty among retirees. Improving financial literacy or using the tax system in order to motivate individuals to manage their pension savings more effectively has not provided the desired change due to the complex and dynamic nature of pension systems. We use the theory of conscious balance and Kahneman's theory of "thinking fast and slow" to suggest an alternative approach by studying the way attitudes toward pension and retirement guide individuals’ retirement savings behavior. We empirically identify the relevant attitudes and hypothesize that creating a conceptual change in these attitudes will create a cognitive dissonance that will motivate individuals to improve their pension savings.

Original languageEnglish
Pages (from-to)1-13
Number of pages13
JournalReview of Economics and Finance
Issue number1
StatePublished - 1 Jan 2019


  • Attitudes
  • Decision-making
  • Pension
  • Retirement
  • Savings

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)


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