Saving regret (the wish in hindsight to have saved more earlier in life): little of the variation is explained by procrastination & psychological factors; unemployment, health & divorce explain much more

Saving Regret. Axel H. Börsch-Supan, Tabea Bucher-Koenen, Michael D. Hurd, Susann Rohwedder. NBER Working Paper No. 25238, Nov 2018. https://www.nber.org/papers/w25238

Abstract: We define saving regret as the wish in hindsight to have saved more earlier in life. We measured saving regret and possible determinants in a survey of a probability sample of those aged 60-79. We investigate two main causes of saving regret: procrastination along with other psychological traits, and the role of shocks, both positive and negative. We find high levels of saving regret but relatively little of the variation is explained by procrastination and psychological factors. Shocks such as unemployment, health and divorce explain much more of the variation. The results have important implications for retirement saving policies.