research topics in financial planning

Research Topics & Ideas: Finance

120+ Finance Research Topic Ideas To Fast-Track Your Project

If you’re just starting out exploring potential research topics for your finance-related dissertation, thesis or research project, you’ve come to the right place. In this post, we’ll help kickstart your research topic ideation process by providing a hearty list of finance-centric research topics and ideas.

PS – This is just the start…

We know it’s exciting to run through a list of research topics, but please keep in mind that this list is just a starting point . To develop a suitable education-related research topic, you’ll need to identify a clear and convincing research gap , and a viable plan of action to fill that gap.

If this sounds foreign to you, check out our free research topic webinar that explores how to find and refine a high-quality research topic, from scratch. Alternatively, if you’d like hands-on help, consider our 1-on-1 coaching service .

Overview: Finance Research Topics

• Corporate finance topics
• Investment banking topics
• Private equity & VC
• Asset management
• Hedge funds
• Financial planning & advisory
• Quantitative finance
• Treasury management
• Financial technology (FinTech)
• Commercial banking
• International finance

Corporate Finance

These research topic ideas explore a breadth of issues ranging from the examination of capital structure to the exploration of financial strategies in mergers and acquisitions.

• Evaluating the impact of capital structure on firm performance across different industries
• Assessing the effectiveness of financial management practices in emerging markets
• A comparative analysis of the cost of capital and financial structure in multinational corporations across different regulatory environments
• Examining how integrating sustainability and CSR initiatives affect a corporation’s financial performance and brand reputation
• Analysing how rigorous financial analysis informs strategic decisions and contributes to corporate growth
• Examining the relationship between corporate governance structures and financial performance
• A comparative analysis of financing strategies among mergers and acquisitions
• Evaluating the importance of financial transparency and its impact on investor relations and trust
• Investigating the role of financial flexibility in strategic investment decisions during economic downturns
• Investigating how different dividend policies affect shareholder value and the firm’s financial performance

Investment Banking

The list below presents a series of research topics exploring the multifaceted dimensions of investment banking, with a particular focus on its evolution following the 2008 financial crisis.

• Analysing the evolution and impact of regulatory frameworks in investment banking post-2008 financial crisis
• Investigating the challenges and opportunities associated with cross-border M&As facilitated by investment banks.
• Evaluating the role of investment banks in facilitating mergers and acquisitions in emerging markets
• Analysing the transformation brought about by digital technologies in the delivery of investment banking services and its effects on efficiency and client satisfaction.
• Evaluating the role of investment banks in promoting sustainable finance and the integration of Environmental, Social, and Governance (ESG) criteria in investment decisions.
• Assessing the impact of technology on the efficiency and effectiveness of investment banking services
• Examining the effectiveness of investment banks in pricing and marketing IPOs, and the subsequent performance of these IPOs in the stock market.
• A comparative analysis of different risk management strategies employed by investment banks
• Examining the relationship between investment banking fees and corporate performance
• A comparative analysis of competitive strategies employed by leading investment banks and their impact on market share and profitability

Private Equity & Venture Capital (VC)

These research topic ideas are centred on venture capital and private equity investments, with a focus on their impact on technological startups, emerging technologies, and broader economic ecosystems.

• Investigating the determinants of successful venture capital investments in tech startups
• Analysing the trends and outcomes of venture capital funding in emerging technologies such as artificial intelligence, blockchain, or clean energy
• Assessing the performance and return on investment of different exit strategies employed by venture capital firms
• Assessing the impact of private equity investments on the financial performance of SMEs
• Analysing the role of venture capital in fostering innovation and entrepreneurship
• Evaluating the exit strategies of private equity firms: A comparative analysis
• Exploring the ethical considerations in private equity and venture capital financing
• Investigating how private equity ownership influences operational efficiency and overall business performance
• Evaluating the effectiveness of corporate governance structures in companies backed by private equity investments
• Examining how the regulatory environment in different regions affects the operations, investments and performance of private equity and venture capital firms

Asset Management

This list includes a range of research topic ideas focused on asset management, probing into the effectiveness of various strategies, the integration of technology, and the alignment with ethical principles among other key dimensions.

• Analysing the effectiveness of different asset allocation strategies in diverse economic environments
• Analysing the methodologies and effectiveness of performance attribution in asset management firms
• Assessing the impact of environmental, social, and governance (ESG) criteria on fund performance
• Examining the role of robo-advisors in modern asset management
• Evaluating how advancements in technology are reshaping portfolio management strategies within asset management firms
• Evaluating the performance persistence of mutual funds and hedge funds
• Investigating the long-term performance of portfolios managed with ethical or socially responsible investing principles
• Investigating the behavioural biases in individual and institutional investment decisions
• Examining the asset allocation strategies employed by pension funds and their impact on long-term fund performance
• Assessing the operational efficiency of asset management firms and its correlation with fund performance

Hedge Funds

Here we explore research topics related to hedge fund operations and strategies, including their implications on corporate governance, financial market stability, and regulatory compliance among other critical facets.

• Assessing the impact of hedge fund activism on corporate governance and financial performance
• Analysing the effectiveness and implications of market-neutral strategies employed by hedge funds
• Investigating how different fee structures impact the performance and investor attraction to hedge funds
• Evaluating the contribution of hedge funds to financial market liquidity and the implications for market stability
• Analysing the risk-return profile of hedge fund strategies during financial crises
• Evaluating the influence of regulatory changes on hedge fund operations and performance
• Examining the level of transparency and disclosure practices in the hedge fund industry and its impact on investor trust and regulatory compliance
• Assessing the contribution of hedge funds to systemic risk in financial markets, and the effectiveness of regulatory measures in mitigating such risks
• Examining the role of hedge funds in financial market stability
• Investigating the determinants of hedge fund success: A comparative analysis

Financial Planning and Advisory

This list explores various research topic ideas related to financial planning, focusing on the effects of financial literacy, the adoption of digital tools, taxation policies, and the role of financial advisors.

• Evaluating the impact of financial literacy on individual financial planning effectiveness
• Analysing how different taxation policies influence financial planning strategies among individuals and businesses
• Evaluating the effectiveness and user adoption of digital tools in modern financial planning practices
• Investigating the adequacy of long-term financial planning strategies in ensuring retirement security
• Assessing the role of financial education in shaping financial planning behaviour among different demographic groups
• Examining the impact of psychological biases on financial planning and decision-making, and strategies to mitigate these biases
• Assessing the behavioural factors influencing financial planning decisions
• Examining the role of financial advisors in managing retirement savings
• A comparative analysis of traditional versus robo-advisory in financial planning
• Investigating the ethics of financial advisory practices

The following list delves into research topics within the insurance sector, touching on the technological transformations, regulatory shifts, and evolving consumer behaviours among other pivotal aspects.

• Analysing the impact of technology adoption on insurance pricing and risk management
• Analysing the influence of Insurtech innovations on the competitive dynamics and consumer choices in insurance markets
• Investigating the factors affecting consumer behaviour in insurance product selection and the role of digital channels in influencing decisions
• Assessing the effect of regulatory changes on insurance product offerings
• Examining the determinants of insurance penetration in emerging markets
• Evaluating the operational efficiency of claims management processes in insurance companies and its impact on customer satisfaction
• Examining the evolution and effectiveness of risk assessment models used in insurance underwriting and their impact on pricing and coverage
• Evaluating the role of insurance in financial stability and economic development
• Investigating the impact of climate change on insurance models and products
• Exploring the challenges and opportunities in underwriting cyber insurance in the face of evolving cyber threats and regulations

Quantitative Finance

These topic ideas span the development of asset pricing models, evaluation of machine learning algorithms, and the exploration of ethical implications among other pivotal areas.

• Developing and testing new quantitative models for asset pricing
• Analysing the effectiveness and limitations of machine learning algorithms in predicting financial market movements
• Assessing the effectiveness of various risk management techniques in quantitative finance
• Evaluating the advancements in portfolio optimisation techniques and their impact on risk-adjusted returns
• Evaluating the impact of high-frequency trading on market efficiency and stability
• Investigating the influence of algorithmic trading strategies on market efficiency and liquidity
• Examining the risk parity approach in asset allocation and its effectiveness in different market conditions
• Examining the application of machine learning and artificial intelligence in quantitative financial analysis
• Investigating the ethical implications of quantitative financial innovations
• Assessing the profitability and market impact of statistical arbitrage strategies considering different market microstructures

Treasury Management

The following topic ideas explore treasury management, focusing on modernisation through technological advancements, the impact on firm liquidity, and the intertwined relationship with corporate governance among other crucial areas.

• Analysing the impact of treasury management practices on firm liquidity and profitability
• Analysing the role of automation in enhancing operational efficiency and strategic decision-making in treasury management
• Evaluating the effectiveness of various cash management strategies in multinational corporations
• Investigating the potential of blockchain technology in streamlining treasury operations and enhancing transparency
• Examining the role of treasury management in mitigating financial risks
• Evaluating the accuracy and effectiveness of various cash flow forecasting techniques employed in treasury management
• Assessing the impact of technological advancements on treasury management operations
• Examining the effectiveness of different foreign exchange risk management strategies employed by treasury managers in multinational corporations
• Assessing the impact of regulatory compliance requirements on the operational and strategic aspects of treasury management
• Investigating the relationship between treasury management and corporate governance

Financial Technology (FinTech)

The following research topic ideas explore the transformative potential of blockchain, the rise of open banking, and the burgeoning landscape of peer-to-peer lending among other focal areas.

• Evaluating the impact of blockchain technology on financial services
• Investigating the implications of open banking on consumer data privacy and financial services competition
• Assessing the role of FinTech in financial inclusion in emerging markets
• Analysing the role of peer-to-peer lending platforms in promoting financial inclusion and their impact on traditional banking systems
• Examining the cybersecurity challenges faced by FinTech firms and the regulatory measures to ensure data protection and financial stability
• Examining the regulatory challenges and opportunities in the FinTech ecosystem
• Assessing the impact of artificial intelligence on the delivery of financial services, customer experience, and operational efficiency within FinTech firms
• Analysing the adoption and impact of cryptocurrencies on traditional financial systems
• Investigating the determinants of success for FinTech startups

Commercial Banking

These topic ideas span commercial banking, encompassing digital transformation, support for small and medium-sized enterprises (SMEs), and the evolving regulatory and competitive landscape among other key themes.

• Assessing the impact of digital transformation on commercial banking services and competitiveness
• Analysing the impact of digital transformation on customer experience and operational efficiency in commercial banking
• Evaluating the role of commercial banks in supporting small and medium-sized enterprises (SMEs)
• Investigating the effectiveness of credit risk management practices and their impact on bank profitability and financial stability
• Examining the relationship between commercial banking practices and financial stability
• Evaluating the implications of open banking frameworks on the competitive landscape and service innovation in commercial banking
• Assessing how regulatory changes affect lending practices and risk appetite of commercial banks
• Examining how commercial banks are adapting their strategies in response to competition from FinTech firms and changing consumer preferences
• Analysing the impact of regulatory compliance on commercial banking operations
• Investigating the determinants of customer satisfaction and loyalty in commercial banking

International Finance

The folowing research topic ideas are centred around international finance and global economic dynamics, delving into aspects like exchange rate fluctuations, international financial regulations, and the role of international financial institutions among other pivotal areas.

• Analysing the determinants of exchange rate fluctuations and their impact on international trade
• Analysing the influence of global trade agreements on international financial flows and foreign direct investments
• Evaluating the effectiveness of international portfolio diversification strategies in mitigating risks and enhancing returns
• Evaluating the role of international financial institutions in global financial stability
• Investigating the role and implications of offshore financial centres on international financial stability and regulatory harmonisation
• Examining the impact of global financial crises on emerging market economies
• Examining the challenges and regulatory frameworks associated with cross-border banking operations
• Assessing the effectiveness of international financial regulations
• Investigating the challenges and opportunities of cross-border mergers and acquisitions

Choosing A Research Topic

These finance-related research topic ideas are starting points to guide your thinking. They are intentionally very broad and open-ended. By engaging with the currently literature in your field of interest, you’ll be able to narrow down your focus to a specific research gap .

When choosing a topic , you’ll need to take into account its originality, relevance, feasibility, and the resources you have at your disposal. Make sure to align your interest and expertise in the subject with your university program’s specific requirements. Always consult your academic advisor to ensure that your chosen topic not only meets the academic criteria but also provides a valuable contribution to the field. 

If you need a helping hand, feel free to check out our private coaching service here.

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A decade of research in the journal of financial planning (2011–2021).

Journal of Financial Planning : September 2022

DIGITAL EDITION version

Executive Summary

• A review was conducted for articles published between 2011 to 2021 in the Journal of Financial Planning (n = 257) to examine themes across theories, datasets, data analysis strategies, research methods, and implications for researchers and practitioners.
• The Journal research relied heavily on secondary data, most of which came from historical returns, and hypothetical data from simulations (n = 127).
• Contributors relied heavily on regression analysis and simulations to perform data analysis. A considerable number (n = 155) of articles did not use any statistical approach (e.g., theoretical papers or hypothetical case studies). Qualitative research was absent.
• The most prolific authors included David M. Blanchett, Wade D. Pfau, and Michael S. Finke. Significant contributors to the Journal included financial planning firms, Kansas State University, Texas Tech University, Morningstar, and The American College of Financial Services.
• Frequently cited article topics included money scripts, retirement planning, and Bitcoin, with the article “The Value of Bitcoin in Enhancing the Efficiency of an Investor’s Portfolio” being cited nearly twice as much as subsequent Journal research.
• Only 38 articles applied overt theoretical frameworks to ground their research.
• Approximately one-third of the articles (n = 90) had a practice implication header, but fewer had a research implication header (n = 13).
• Findings identified prominent financial planning topics in the last decade and bring attention to those that would benefit from increased attention with hopes to encourage future research and practice.

Jason Anderson, CFP ® , CPA, is a lecturer in the B.B.A. program at the University of Kansas, owner of Gradmetrics, and a Ph.D. student studying personal financial planning at Kansas State University. Jason is interested in fintech, rural financial planning, and student loan planning. He can be reached HERE .

Joanne C. Wu, CFP ® , PFP, is an international Ph.D. student in the personal financial planning program at Kansas State University, and a senior financial planner at MD Management, a firm dedicated to the financial planning needs of Canadian physicians and their families. She can be reached HERE .

Ashlyn Rollins-Koons is an investment professional practicing in California and a doctoral student in Kansas State University’s personal financial planning program. Ashlyn’s research interests are in behavioral finance, religion and finance, natural disaster financial planning, and family financial socialization. She can be reached HERE .

Stephen Azaloff is the chief financial officer of Medical Manufacturing and a personal financial planning doctoral student at Kansas State University. Stephen is interested in research pertaining to entrepreneurs and their families, particularly entrepreneurial bootstrapping and financial behaviors that predict credit worthiness. He can be reached HERE .

Ruth McCaleb is an undergraduate student in the personal financial planning program at Kansas State University. She can be reached HERE .

Cheryl Rauh is the program manager of TRIO McNair Scholars Program and a personal financial planning doctoral student at Kansas State University. Cheryl’s research interests are in financial literacy and education, college student financial wellness, and financial communication. She can be reached HERE .

Megan McCoy, Ph.D., LMFT, AFC, CFT-I, is an assistant professor and director of the personal financial planning master’s program at Kansas State University. She serves on the board of directors for the Financial Therapy Association. She is also the associate editor of profiles and book reviews for the Journal of Financial Therapy .

NOTE: Click on the images below for PDF versions View article in the DIGITAL EDITION

The Journal of Financial Planning (the Journal ) is the Financial Planning Association’s (FPA) hub for educational content and knowledge that was developed to directly benefit financial planning firms and industry professionals. For more than 40 years, professionals, researchers, and subject matter experts have published original, thought-provoking content on all aspects of financial planning. This article explores the last decade of published research in the Journal to identify current research trends and future opportunities. Despite the Journal ’s premier status in the field, an analysis of this nature for the Journal of Financial Planning has not yet occurred.

Identifying scholarly trends in decade reviews allows for a comprehensive description of research trends and future opportunities for research and practice. In fact, comparable articles have surveyed other financial planning journals such as the Journal of Financial Counseling and Planning (Xiao et al. 2020), Financial Services Review (Hanna et al. 2011), and the Journal of Family and Economic Issues (Dolan 2020). Xiao et al. (2020) explained that these reviews provide an opportunity to explore how a journal can bolster its standing as a major outlet in financial planning practice and research. Hanna et al. (2011) described how the review process provides insights into patterns of research. Dolan (2020) raised the questions: “What do we still need to learn? Are the data sources we have been using adequate for what we need to know? Where should we focus our attention?” (591). These previous reviews of financial journals provided the motivation and backdrop for the current analysis.

The current review of the Journal analyzed the past decade of publications (2011–2021), a period marked by notable events such as the longest bull market in history, the onset of COVID-19, the emergence of cryptocurrency and other forms of digital currency, a shift to virtual client–adviser engagements, and the rise of do-it-yourself financial planning and investing. Researchers and practitioners had ample topics to discuss. As a developing academic discipline, the study of financial planning stands to gain from analyzing research trends. Toward that aim, this review explores the Journal’ s common keywords in practice and research articles, top authors and their affiliations, most-cited articles, recurring theories, popular datasets, preferred analysis strategies, and research and practice implications.

Methodology

Content published in the Journal varies from monthly feature articles, interviews, columns, and peer-reviewed technical contributions with the intent to directly benefit financial planners in their work (Publons n.d.). Authors include scholars, practitioners, and content experts who contribute articles covering a broad range of financial planning topics. A special section in the Journal , the Next Generation Planner , caters to new financial planning industry professionals. According to the Journal’ s editorial review submission guidelines, “Submission Guidelines for Articles,” readers are primarily FPA practitioners as opposed to researchers (Financial Planning Association n.d). There are approximately three practitioner articles for every research article in the Journal .

An initial export of articles in the Journal was completed in October 2021 from ProQuest One Academic (ProQuest). This export resulted in 2,338 total records and included articles, credits, table of contents, and stat banks. The authors verified the initial export for errors and omissions during the categorization process. In four instances, multiple records from the ProQuest export represented a single, multipart article. To rectify this, records were manually screened and categorized under the table of contents heading to provide broader coverage. After the manual review, eight articles were manually added from information found in the Journal ’s issue. Then two additional levels of analysis were completed to examine the textual patterns in the full list of articles (n = 2,346).

First Level of Analysis: Examining Textual Patterns in the Journal

The full list of items (n = 2,346) was manually recategorized into the headings found in the table of contents across the issues in our publication range. These headings include cover stories, columns, contributions (the term used for research articles for 2011–2019), research (used for articles in 2020 and 2021), practice management, roundtable, special report, focus, in-depth, next-generation planner, book excerpt, commentary, and the departments. 1 The minor articles found under the heading “departments” were removed due to their brevity. Next, the “Best of” issues were removed from this study as they are reprints of articles from the year and thus were already included in their original issue. Finally, we removed online exclusives (see the November 2019 issue) due to their divergence from the normal print cycle. The edited list totaled 1,113 article abstracts of which n = 257 were research articles and n = 856 were practitioner articles. This level of analysis offers insight into the differences between the research and practitioner articles in the Journal .

To identify the most frequently used words in the Journal , we used the Quanteda package in R. Quanteda is an open-source textual analysis tool for quantitative processing of language in documents (Benoit et al. 2018). This software package relies on artificial intelligence and natural language processing to scan text for patterns. Quanteda tabulated the most frequently used words in the ProQuest article abstracts for both practitioner and research articles. It is important to note that in the absence of Journal -provided abstracts, ProQuest (as well as other library databases) create their own versions and may diverge from the Journal ’s and the authors’ intent. Regardless, these abstracts provided an opportunity to get an overarching perspective of the general focus of the articles. The resulting output is a list of the most frequently used words and their use count based on the ProQuest abstracts for both practitioner articles (Table 1) and research articles (Table 2).

A comparison of the most frequently used terms in the abstracts for practitioner articles and research articles showed key differences in the focus areas. While many of the terms used were common to both groups (financial, clients, planning, planners, and retirement), some were unique to each category. Unique terms for practitioners included advisers, life, tax, and business, and for academics included portfolio, income, risk, paper, and withdrawal. The term “clients” ranked much higher (second) in practitioner articles, compared to research articles (eighth). Also, “clients” ranked above “planning” and “planners” for practitioner articles, whereas it was ranked much lower than “planning” for academics. However, the combined frequency of “planning” and “planners” (1,095) exceeded the use of “client” and “clients” for practitioner articles (1,008).

The top 10 most frequently used words for both practitioner and research articles were then compared to key topics for CFP ® certification. The CFP Board’s CFP ® Certification 2021 Principal Knowledge Topics included professional conduct and regulation, general principles of financial planning, risk management and insurance planning, investment planning, tax planning, retirement savings and income planning, estate planning, and psychology of financial planning (CFP Board 2021). These topics are frequently updated by the CFP Board to align with the needs of the financial planning profession. Topic areas that are deemed important to the CFP Board but that were infrequent in the analysis of terms include “estate” and “psychology.” It is unclear if the CFP Board uses the term “risk management” and “insurance planning” interchangeably, but neither “insurance” nor “risk” are terms that frequently appear in practitioner articles. The term “risk” does frequently appear in research articles, ranking sixth, though it is important to note that our analysis in Quanteda does not reveal context; it is unknown if the high frequency of “risk” is related to insurance management, risk tolerance, or investments. Ambiguity also exists with the term “psychology,” which is not commonly used in the financial planning psychology realm, compared to other more common word choices such as anxiety, communication skills, conflict resolution, etc. Results may indicate that practitioner articles focused more on the knowledge topics of general financial planning, tax planning, and retirement planning, while academic articles focused on general financial planning, risk management and insurance planning, and retirement planning. The divergence in topic areas has implications for practitioners and researchers as it hints at the need for consuming both practice and research articles to fully be up to date on CFP Board topic areas. In addition, results may encourage special issues on topics that are not as large of a focus in either the practice or research domains.

Second Level of Analysis: A Deeper Look at Research Articles

The second level of analysis focused on peer-reviewed research articles (n = 257). These articles were reviewed using a double-blind process, in which neither the authors nor the reviewers are aware of the other. The goal is twofold; first to ensure the reviewers are both content and methodology experts beyond the scope of the Journal ’s editor. Second, to ensure academic integrity and rigor by allowing the reviewer to remain unbiased regardless of the author’s status, and to be forthcoming with criticism. Individual authors were assigned to manually read each research article to identify top authors and affiliations, articles cited in other works, theoretical frameworks, datasets, data analysis methods, and implications for practitioners or researchers.

Authorship and Affiliation

This review was inspired by previously completed journal reviews (e.g., Xiao et al. 2020; Hanna et al. 2011; Dolan 2020; Cummings and Heck 2015). We began our review in a similar fashion to the preceding reviews with a look into the most frequently published authors in the Journal . The findings summarized in Tables 3 and 4 show the rankings of the most prolific authors and affiliations across research articles. In addition to the tabulated results, two other dimensions are worth noting. First, a single female made the top 10 list (Sonya Lutter) and second, the great majority of authors appear to be white. Top affiliations are largely domestic (United States) versus international. Notably, Bradley T. Klontz is a mental health professional rather than a financial planner, but that may reflect the psychology of financial planning CFP ® Certification Principal Knowledge Topic that did not show up in our analysis of terms through Quanteda.

The review of affiliations uncovered that many of the research articles were written by practitioners (Table 4). Researchers were affiliated with their institution, normally a university or research institute. Articles that were written by practitioners were categorized by either a financial planning firm affiliation or occupation (examples include financial planner, economist, insurance professional, investment professional, tax professional, consulting, and retired). A few (n = 5) were categorized as “other” because there was no suitable category (e.g., firms specializing in non-financial planning industries). Each author was given one primary affiliation, as some authors listed multiple affiliations. Many articles in this analysis had multiple authors. The top affiliation category is financial planning firms followed by Kansas State University, Texas Tech University, Morningstar, and The American College of Financial Services. The results highlight one of the unique strengths of the Journal : the ability to persuade non-academics to submit research articles to the Journal .

Article Citations

Google Scholar ( scholar.google.com ) is a web search engine for scholarly work (e.g., articles, conference proceedings, reports). A unique aspect of Google Scholar is that it provides a “cited by” number, which is the number of times the article has been cited within other articles. Table 5 provides the results of the most cited research articles in the Journal . The most frequent author appearances on this list include Chen Wu and Vivek Pandey (cited 133 times); followed by Bradley Klontz and Sonya Lutter (cited 79 times); Michael Finke, Wade Pfau, and David Blanchett (cited 73 times); Wade Pfau and Michael Kitces (cited 60 times); and John Shoven and Sita Slavov (cited 57 times). Popular cited topics included retirement planning, Bitcoin, and money scripts. This could be reflective of emerging research that has not yet been covered by other financial planning journals, among other reasons.

Theory is a systematic collection of concepts and relations that connect ideas and data (White and Klein 2002). Theory is important because it provides a lens to observe different phenomena. When we examine an object, a situation, a trend, or a phenomenon through one lens, it may appear different from if we had looked at it through another theoretical lens (Bengtson et al. 2005). Buie and Yeske (2011) lamented that financial planning remains in search of an underlying theory and emphasized the importance of engaging in the scientific process. The financial planning field has often borrowed theories from other fields and only recently have efforts been made to adopt theories on a wider basis (Overton 2008). The frequency of theory used in the Journal is summarized in Table 6.

Overall, mean-variance portfolio theory was the most frequently used theoretical framework, though it framed only five articles out of the 257 contributions. Some authors used alternate terms for this theory, including modern portfolio theory and portfolio theory. The life cycle hypothesis also underpinned many articles, even when not explicitly defined as a theoretical framework. In total, only 38 articles included theoretical frameworks, and 35 total theories were applied. Seven articles applied more than one theory to establish their theoretical framework. Ultimately, only 14.8 percent of research articles in the Journal applied theory, indicating significant room for growth in the application of theory.

Datasets are the aggregate responses based on surveys, interviews, focus groups, or observations of a group of participants. Primary data is information collected directly by the researcher, whereas secondary data is accessed through datasets collected from other researchers (Andrews, Higgins, Andrews, and Lalor 2012). Researchers commonly use secondary data as it is less costly and time-consuming to gather results from large samples compared to collecting primary data (Johnston 2014). Secondary data can also be helpful to researchers who desire to study populations that are not easily accessible or topics that respondents may feel uncomfortable discussing (Andrews, Higgins, Andrews, and Lalor 2012). Despite the benefits, there are disadvantages inherent in secondary analysis, and the use of secondary data has its limitations. According to Babbie (2015), the key problem involves the recurrent question of validity. Datasets typically are created with a distinct purpose, which may differ from that of the researchers, and authors may be unable to study certain variables. In addition, there is a time factor with secondary data as, often, time has passed between the data collection by the primary data collectors and when the dataset is used in secondary data studies.

Table 7 summarizes the most-used data sources in the Journal publications in the last decade. Publications have primarily relied on secondary data developed through historical returns. Of the 257 research articles analyzed, 49.8 percent used historical return data. These articles may be especially useful to practitioners, who use historical returns in their day-to-day practice. However, historical data is limited in its ability to describe future market performance. The most prominent secondary datasets used by researchers were the Health and Retirement Study (3.1 percent), the Survey of Consumer Finances (3.1 percent), and the National Longitudinal Survey of Youth (2.7 percent).

The results of this analysis indicate that datasets are not commonly used in the Journal . A notable number of articles (17.1 percent) did not use data at all but instead were theoretical, discussing topics such as industry trends, compliance topics, or client service. The next most-used category of “data” was case studies (8.1 percent). Although case studies provide tangible demonstrations of how to apply skills learned in practice, the results need to be tested to ensure their validity.

Primary data collection remained rare in the Journal during the years considered. Our analysis uncovered only 18 studies that used primary data, which averaged out to less than two primary data-driven articles a year. The Journal has reduced its total number of research articles throughout the last decade. There were 27 research articles in 2011 and only 12 in 2020. The reduction in the number of research articles may have been partially due to an increase in quality as demonstrated by an increase in data-driven articles. For example, in 2012, the use of data amongst research articles was less than 80 percent of publications. The years in which data use was at its highest were 2016 and 2020. Secondary and primary data have their unique advantages and disadvantages, but researchers should continue finding ways to rely on primary data and use less commonly accessed secondary datasets. Researchers might also consider looking outside the box at datasets from other client-centered fields (i.e., mental health or medical datasets) to find ways to better serve clients.

Data Analysis Strategies

The 257 articles classified as research were examined for their data analysis strategy. Each article was assigned one of four summary categories according to the following logic (see Table 8). First, articles that relied on a simulation approach, most commonly Monte Carlo, were labeled “simulation.” This was the most utilized statistical data analysis method in the reviewed period, making up 41.81 percent of the statistical data analysis strategies used. Next, if an article showed evidence of regression and/or correlation analysis among variables, it was categorized as “regression analysis.” Sample methods include ordinary least squares (OLS), Poisson regression, and probit/logit models. Nearly one-fourth of the 257 articles examined made up this category, ranking it as the second most-used statistical method and the third most-used method overall. Finally, articles that used a statistical data method that neither fit into “simulation” nor “regression analysis” were considered “other,” of which the most frequently used statistical tests in this category were differences in means, such as t-tests and chi-square analysis. Several articles used basic descriptive statistics to convey the researched topic. By using more advanced statistical methods, authors might be able to derive further insights and move from the descriptive to the inferential. Furthermore, they aid in developing actionable implications and ease of pursuing further research on the given topic.

The most notable finding from the study is the observation that 81 of the 257 examined research articles did not use any method at all, and instead were hypothetical case studies, theoretical papers, or situational interpretations. Common examples of situational interpretations were articles dedicated to various tax issues, where the situational interpretation of the issue was valuable and did not require primary or secondary data or a specific empirical method. No studies used qualitative research, which presents an area of uncharted opportunity for the Journal . Qualitative research has distinctive strengths effective for studying subtle nuances in attitudes and behaviors and for examining social processes over time (Babbie 2015). More qualitative research in financial planning will provide a broader understanding of both client and planner’s lived experiences.

Practice and Research Implications

In numerous disciplines, a gap exists between research and practice (Owenz and Hall 2011; Tkachenko, Hahn, and Peterson 2017; Walker, Chandra, Zhang, and van Witteloostuijn 2019). Often, the discussion about the gap between research and practice focuses on the limitations of the “other.” Researchers argue that practitioners do not consume their findings, and practitioners protest that researchers do not publish work worth consuming (e.g., researchers focus on college students rather than financial planning clients or the writing is too difficult to understand). As a result, some practices shown to be effective by scientific research are seldom used in applied settings, and some commonly implemented practices are not empirically validated, may be ineffective, or even be harmful to clients (Kazdin 2008).

Klontz (2016) authored a paper about how little financial planning research appears to matter to practitioners, citing a conference he attended that discussed this research–practice gap. “For the most part, financial planning research does not matter to financial planners. It is too obscure. It is too difficult to digest and even when digested, it is too unrelated to what concerns them most. For the most part, it does not inform financial planning practice” (43). Klontz highlights the Journal ’s essential role in bridging the gap, stating that it is one of the few academic journals in any discipline that attempts to make the research articles included directly relevant to practitioners. Our study sought to explore how well the Journal bridged the gap through an examination of overt practice and research implications.

First, we explored how well the research spoke to practical implications by examining the 257 research articles, noting the frequency of clear and explicitly labeled practice implication headers in the research article (see Table 9). Findings showed that 90 of the 257 articles had a header. Each of the 257 articles were read to determine if clear implications for practitioners or researchers were present, regardless of the header description. It was deemed that 257 of 257 articles clearly stated practical implications for practitioners. Research implication presence was significantly less. Only 13 of the 257 articles included an explicit research implication header but an additional 68 included clearly stated research implications elsewhere in the paper.

Second, efforts were made to identify whether practice management articles had implications. ProQuest was used to search the Journal (with the query pubid(4849) AND implication* within “Anywhere”) to identify practice articles that identified implications (n = 151). Next, research articles were eliminated, leaving a sample of 59 practice articles that had the word “implication” anywhere in the article. Errors were recorded in the validity verification of the articles, as after reading them it was discovered that several did not include the word implication despite the search attempt. This might be due to varying optical character recognition (OCR) functionality between full-text PDFs within ProQuest. The Journal may want to reach out to larger databases like ProQuest and encourage them to make accessible PDFs for the articles available. The descriptions of these 59 articles are shared here with the caveat that a more in-depth examination of the complete set of practice management articles is required before making final conclusions. Only seven of the 59 practice-based articles included an explicit practice implication header, and none included a research implication header. Then each article was read for any mention of research and/or practice implications. While 59 of 59 articles were deemed to have included implications for practice, none of the practice management articles were deemed to have a presence for research implications. With more explicit research and practice implications sections (preferably with clear headers) for both practice and research articles, the Journal can improve its already profound efforts to publish works useful to both practitioners and researchers.

Limitations

This study had three main limitations. First, a full year of articles from 2021 is not used as at the time of export, the author’s ProQuest database had an embargo on the most recent Journal articles. Articles pulled for this study from ProQuest terminated with the April 2021 issue. Second, filtering by the main headings found in the Journal table of contents gave focus to the comparison of practitioner and researcher interests. Although it was useful to filter out superfluous records in the original export file from ProQuest, it is possible that the process limited the overall validity of the results. Minor category articles that were excluded could have provided other relevant topics, particularly ones pertinent to practitioners. Finally, the abstracts used for textual analysis were not provided by the Journal directly: they were created by—and specific to—the ProQuest database. A search uncovered different abstract constructions across databases (e.g., Business Source Premier from EBSCO had different abstracts). The textual analysis findings provided by this study should be interpreted within this context.

This examination of the last decade of published works from the Journal of Financial Planning has revealed several key discoveries, especially regarding research contributions. One of the unique strengths of the Journal is its role as a meeting ground for the ideas of practitioners and scholars in a single publication. The bulk of the Journal ’s output is by practitioners for fellow practitioners, and there are gaps in the overlap between the topics of interest demonstrated by practitioners versus those explored by researchers. The Journal is an excellent source of practical information for financial planners, but more can be done to uphold former Journal editor Lance Ritchlin’s vision to “bridge the gap between what practitioners know and the skills they need to acquire if financial planning is to be a true profession” (Ritchlin 2011, 10). The Journal might foster more research engagement by ensuring full-text articles are searchable with OCR, incorporating abstracts in library databases, or creating standardized classification codes (similar to JEL created by the American Economic Association). These changes increase opportunities for researchers to find and therefore cite work from the Journal and could promote interest in producing research targeted for the journal. Greater research engagement brings more willing reviewers to promote rigorous expectations for framing research, in theory, applying complex statistical analysis, and introducing novel datasets. A more robust research offering could go a long way in strengthening the Journal’ s standing in the field of personal financial planning and enhance opportunities for research to connect with the interests of practitioners .   

Anderson, Jason, Joanne C. Wu, Ashlyn Rollins-Koons, Stephen Azaloff, Ruth McCaleb, Cheryl Rauh, and Megan McCoy. 2022. “A Decade of Research in the Journal of Financial Planning (2011–2021).” Journal of Financial Planning 35 (9): 70–81.

• Note that although peer-reviewed research articles were referred to as both contribution and research articles in the Journal , we will refer to them solely as research articles moving forward. 

Andrews, Lorraine, Andrea Higgins, Michael Waring Andrews, and Joan G. Lalor. 2012. “Classic Grounded Theory to Analyse Secondary Data: Reality and Reflections.” The Grounded Theory Review 11 (1): 12–26. http://groundedtheoryreview.com/wp-content/uploads/2012/06/ClassicGroundedTheorytoAnalyseSecondaryDataVol111.pdf .

Babbie, Earl. 2015. The Practice of Social Research . 14th ed. Boston: Cengage Learning.

Bengtson, Vern L., Alan C. Acock, Katherine R. Allen, Peggye Dilworth-Anderson, and David M. Klein. 2005. “Theory and Theorizing in Family Research: Puzzle Building and Puzzle Solving.” In Sourcebook of Family Theory and Research : 3–33. Thousand Oaks, CA: Sage Publications.

Benoit, Kenneth, Kohei Watanabe, Haiyan Wang, Paul Nulty, Adam Obeng, Stefan Müller, and Akitaka Matsuo. 2018. “Quanteda: An R Package for the Quantitative Analysis of Textual Data.” Journal of Open Source Software 3 (30): 774. doi: 10.21105/joss.00774.

Buie, Elissa, and Dave Yeske. 2011. “Evidence-based Financial Planning: To Learn . . . like a CFP.” Journal of Financial Planning 24 (11): 38–40, 42–43.

CFP Board. 2021, March. “CFP® Certification 2021 Principal Knowledge Topics.” www.cfp.net/-/media/files/cfp-board/cfp-certification/2021-practice-analysis/2021-principal-knowledge-topics.pdf .

Cummings, Benjamin F., and Jean L. Heck. 2015. “The Most Prolific Authors in Financial Planning Literature.” Journal of Financial Planning 28 (12): 50–62.

Dolan, Elizabeth M. 2020. “Ten Years of Research in the Journal of Family and Economic Issues: Thoughts on Future Directions.” Journal of Family and Economic Issues 41 (4): 591–614. doi: 10.1007/s10834-020-09739-z.

Financial Planning Association. n.d. “Submission Guidelines for Articles: Editorial Review.” Accessed April 26, 2022. www.financialplanningassociation.org/sites/default/files/2021-06/Editorial%20Review_UPDATED%20060921.pdf .

Hanna, Sherman D., HoJun Ji, Jonghee Lee, Jiyeon Son, Jodi Letkiewicz, HanNa Lim, and Lishu Zhang. 2011. “Content Analysis of Financial Services Review.” Financial Services Review 20 (3): 237–251.

Johnston, Melissa P. 2014. “Secondary Data Analysis: A Method of Which the Time Has Come.” Qualitative Quantitative Methods in Libraries 3 (3): 619–626.

Kazdin, Alan E. 2008. “Evidence-Based Treatment and Practice: New Opportunities to Bridge Clinical Research and Practice, Enhance the Knowledge Base, and Improve Patient Care.” American Psychologist 63 (3): 146–154.

Klontz, Bradley T. 2016. “Why Financial Planning Research Doesn’t Matter (and What to do About it).” Journal of Financial Planning 29 (10): 42–44.

Overton, Rosilyn H. 2008. “Theories of the Financial Planning Profession.” Journal of Personal Finance 7 (1): 13–41.

Owenz, Meghan, and Susan R. Hall. 2011. “Bridging the Research–Practice Gap in Psychotherapy Training: Qualitative Analysis of Master’s Students’ Experiences in a Student-led Research and Practice Team.” North American Journal of Psychology 13 (1): 21–35.

Publons. n.d. “Journal of Financial Planning”. https://publons.com/journal/59998/journal-of-financial-planning/ .

Ritchlin, R. 2011. “Growing Pains.” Journal of Financial Planning 24 (11): 10.

Tkachenko, Oleksandr, Huh-Jung Hahn, and Shari L. Peterson. 2017. “Research–Practice Gap in Applied Fields: An Integrative Literature Review.” Human Resource Development Review 16 (3): 235–262.

Walker, Richard M., Yanto Chandra, Jiasheng Zhang, and Arjen van Witteloostuijn. 2019. “Topic Modeling the Research–Practice Gap in Public Administration.” Public Administration Review 79 (6): 931–937.

White, James M., and David M. Klein. 2002. Family Theories . Thousand Oaks, CA: Sage Publications.

Xiao, Jing Jian, Beatrix Lavigueur, Amanda Izenstark, Sherman Hanna, and Francis C. Lawrence. 2020. “Three Decades of the Journal of Financial Counseling and Planning.” Journal of Financial Counseling and Planning 31 (1): 5–13. doi: 10.1891/JFCP-20-00010.

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Financial Planning Research Journal

Original, peer-reviewed research

The Financial Planning Research Journal contributes original, peer-reviewed research to aid understanding of the practice and policy of financial planning in Australia. Published by Griffith University on behalf of the Financial Advice Association Australia , our articles span topics including economics, finance, accounting, taxation, behavioural finance, financial literacy, financial education, law and more.

About the journal

The  Financial Planning Research Journal provides an academic platform to discuss issues around personal financial planning and wealth management, changes in the financial planning industry and the notion of professionalism in personal finance within Australia.

Published twice a year, FPRJ is produced by Griffith University on behalf of the  Financial Advice Association Australia .

View the contributors guidelines

View the Publication Ethics and Malpractice Statement

Editorial board

• Professor Mark Brimble (Co-Editor), Griffith University
• Dr Michelle Cull (Co-Editor), Western Sydney University
• Ms Louise Trevaskis, FAAA
• Professor Robert Bianchi, Griffith University
• Professor Brett Freudenberg, Griffith University
• Professor Adam Steen, Deakin University
• Associate Professor Abdullahi Dahir Ahmed, RMIT University
• Dr Abu Mollik, University of Canberra
• Dr Searat Ali, University of Wollongong

VOLUME 9, ISSUE 1 2023

• Canadian retirement planning behaviour: How reliance on a government pension relates to pre-retirement savings and planning behaviours (Vol 9, Iss 1, PDF 283k) Tanya M. Staples, Ashlyn Rollins-Koons, Gregory J. Anderson, Blake Gray
• Spend and repeat! Young adult’s experiences with buy now pay later services (Vol 9, Iss 1, PDF 443k) Levon Blue, Louisa Coglan, Thu Pham, Imke Lammer, Ryan Menner, Chrisann Lee

VOLUME 8, ISSUE 1, 2022

• Can personal budget management services improve debt repayments? A study using budget data (Vol 8, Iss 1) Iqbal Madakkatel, Belinda Chiera, Mark D. McDonnell
• Retirees, financial planning horizon, and retirement satisfaction (Vol 8, Iss 1) Blain M. Pearson, Donald Lacombe
• Factors influencing the motivation to pursue a career in financial planning (Vol 8, Iss 1) Michelle Cull, Csilla Skultety, and Ryan Kumar
• Efficient asset allocation for individual investors in the etf world (Vol 8, Iss 1) Riza Emekter, Benjamas Jirasakuldech, Robert Beaves

Download Volume 8, Issue 1 in full (PDF 2.2MB)

VOLUME 7, ISSUE 1, 2021

• Management frameworks and methods: perspectives and tools for financial service professionals (Vol 7, Iss 1) William A Kline, Richard S Brown, Divya P Kuchimanchi
• Technology will save financial advice (Vol 7, Iss 1) Nat Daley, Katherine Hunt
• Financial and psychological reverberations during COVID-19: evidence for individual and generational turning points? (Vol 7, Iss 1, 2021, Final) Kym Irving
• The value of financial advice in a crisis: A multidisciplinary literature review (Vol 7, Iss 1) Ellana Loy, Karen Wildman, Kirsten MacDonald, Mark Brimble

Download Volume 7, Issue 1 in full (PDF 4.5MB)

VOLUME 6, ISSUE 1, 2020

• COVID-19, investment risk, and retirement security (Vol 6, Iss 1, PDF 109k) Michael Drew
• Predicting financial risk tolerance and risk-taking behaviour: A comparison of questionnaires and tests (Vol 6, Iss 1, PDF 126k) John Grable, Amy Hubble, Michelle Kruger and Melissa Visbal
• The Australian Government is justified in establishing a single disciplinary body (Vol 6, Iss 1, PDF 679k) Angelique McInnes
• The Hayne Royal Commission and financial planning advice: A review of the impact on the operating model of financial advice firms (Vol 6, Iss 1, PDF 105k) Mohammad Abu-Taleb , Afzalur Rashid and Syed Shams

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VOLUME 5, ISSUE 1, 2019

• Financial attitude, knowledge, investment behaviour and satisfaction among the clients of comprehensive financial planning services (Vol 5, Iss 1, PDF 259k) H. Young Baek, Doseong Kim and Jong Oh
• Learning to produce a financial plan: Student perceptions of integrating knowledge and skills (Vol 5, Iss 1, PDF 281k) Glenda Davis and Michelle Cull
• Water as an investment and the impact of regulatory risk (Vol 5, Iss 1, PDF 292k) Yizheng Jin, Rajibur Reza, Bin Li, Eduardo Roca and Victor Wong
• Career outcomes of financial planning students (Vol 5, Iss 1, PDF 569k) Tracey West, Di Johnson and Anna Webb

Download Volume 5, Issue 1 in full (PDF 5.6MB)

VOLUME 4, ISSUE 2, 2018

• Bias Interrupters––Intentionally disrupting the status quo to create inclusive and well workplaces (Vol 4, Iss 2, PDF 177k) Leith Mitchell
• Indigenous autonomy and financial decision-making in communities (Vol 4, Iss 2, PDF 99k) Levon Blue and Ciaran O'Faircheallaigh
• Flexible work: Barrier to benefits? (Vol 4, Iss 2, PDF 143k) Melinda Laundon and Penny Williams
• Retirement outcomes for female primary carers in Australia: A literature review (Vol 4, Iss 2, PDF 178k) Amanda Craft, Sharon Taylor, Alicia Gaffney and Suzanne Wagland

Download Volume 4, Issue 2 in full (PDF 1MB)

VOLUME 4, ISSUE 1, 2018

• A review of ethics education in financial planning courses in Australia (Vol 4, Iss 1, PDF 211k) Michelle Cull and Briana Melville
• Communication task difficulty in investment risk profiling: A linguistic perspective (Vol 4, Iss 1, PDF 124k) Stephen Moore
• Insurance literacy in Australia: Not knowing the value of personal insurance (Vol 4, Iss 1, PDF 129k) Tania Driver, Mark Brimble, Brett Freudenberg and Katherine Hunt
• A competitive analysis of sector diversification in Australia, India and China (Vol 4, Iss 1, PDF 178k) Suneel Maheshwari, Rakesh Gupta, Jinze Li

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Volume 3, Issue 2, 2017

• Understanding the leveraged life cycle investment strategy for defined-contribution plan investors ( Vol 3, Iss 2, PDF 170k) Luo Wang, Bin Li, Benjamin Liu
• Overconfidence in financial literacy ( Vol 3, Iss 2, PDF 159k) Laura de Zwaan, Chrisann Lee, Yulin Liu, Toni Chardon
• Customer intention to save for retirement using a professional financial services planner ( Vol 3, Iss 2, PDF 143k) Catherine M. Rickwood, Lester W. Johnson, Steve Worthington, Lesley White
• Consumers of financial advice in New Zealand ( Vol 3, Iss 2, PDF 134k) Janine K. Scott
• Equity holdings of Australian baby boomers comparing life cycle phases ( Vol 3, Iss 2, PDF 156k) Tracey West

Download Volume 3, Issue 2 in full (PDF 1.4MB)

Volume 3, Issue 1, 2017

• True links: Precursory lessons from golf for effective financial behaviour ( Vol 3, Iss 1, PDF 122k) Julie Knutsen, Mirela Malin, Tracey West and Mark Brimble
• The demographics that predict success in the Australian Certified Financial Planner ® certification program ( Vol 3, Iss 1, PDF 183k) Sharon Taylor, Suzanne Wagland and Amanda Taylor
• Sequencing risk for baby boomers: Prosperity or poverty ( Vol 3, Iss 1, PDF 106k) Loretta Iskra and Ciorstan Smark

Selected papers: STEP 2 nd International Conference

• Current practices in Australian farm succession planning: Surveying the issues ( Vol 3, Iss 1, PDF 120k) Olivia Falkiner, Adam Steen, John Hicks and Deirdre Keogh
• Financial and estate planning in the age of digital assets: A challenge for advisors and administrators ( Vol 3, Iss 1, PDF 76k) Rod Genders and Adam Steen

Download Volume 3, Issue 1 in full (PDF 1.25MB)

Volume 2, Issue 2, 2016

• Examining the legitimacy of the current ‘authorised representative’ licensing model ( Vol 2, Iss 2, PDF 142k) Angelique McInnes and Abdullahi D. Ahmed
• Financial literacy education with Aboriginal people: The importance of culture and context ( Vol 2, Iss 2, PDF 166k) Levon Blue
• Industry demand for financial planning graduates ( Vol 2, Iss 2, PDF 125k) Dianne Johnson, Mark Brimble and Ric Zanetti
• Investment risk profiling: Lessons from psychology ( Vol 2, Iss 2, PDF 106k) Katherine Hunt
• The time diversification puzzle: A survey ( Vol 2, Iss 2, PDF 209k) Robert J. Bianchi, Michael E. Drew and Adam N. Walk

Download Volume 2, Issue 2 in full (PDF 4.7MB)

Volume 2, Issue 1, 2016

• Characteristics of trust in personal financial planning ( Vol 2, Iss 1, PDF 153k) Michelle Cull, Terry Sloan
• Can stakeholders be satisfied with accountants' education to act as advisors to self-managed superannuation funds? ( Vol 2, Iss 1, PDF 148k) Brett Freudenberg, Dale Bocabella
• Averting poverty and government budgetary pressure through releasing home equity: A safe and informed solution for baby boomer homeowners ( Vol 2, Iss 1, PDF 164k) Dianne Johnson, Mark Brimble, Andrew Worthington
• The equity risk premium in Australia (1900–2014) ( Vol 2, Iss 1, PDF 238k) Robert J. Bianchi, Michael E. Drew, Adam N. Walk

Download Volume 2, Issue 1 in full (PDF 3.4MB)

Volume 1, Issue 1, 2015

• Challenges facing financial planners advising ageing clients with diminished financial capacity ( Vol 1, Iss 1, PDF 119k) John Teale
• Just how safe are 'safe withdrawal rates' in retirement? ( Vol 1, Iss 1, PDF 244k) Michael E. Drew, Adam N. Walk
• The conflict between financial decision making and Indigenous Australian culture ( Vol 1, Iss 1, PDF 142k) Suzanne Wagland, Sharon Taylor
• A (w)hole in the financial budget: Budgeting's influence on the effective use of credit card debt in Australia ( Vol 1, Iss 1, PDF 124k) Sanja Ajzerle, Mark Brimble, Brett Freudenberg
• Understanding the relationship between fund flows and past performance in Australian managed funds ( Vol 1, Iss 1, PDF 95k) Sudharshan Reddy Paramati, Di Mo, Rakesh Gupta

Download Volume 1, Issue 1 in full (PDF 746k)

Contact our Editor for paper submission requirements, questions, comments and advertisements.

[email protected]

PERSPECTIVE article

Financial planning for retirement: a psychosocial perspective.

• 1 Faculty of Psychology, Universidad Nacional de Educación a Distancia, Madrid, Spain
• 2 Weatherhead School of Management, Case Western Reserve University, Cleveland, OH, United States

Retirement is a time of life that has grown ever longer in the developed world, and the number of pensioners has increased accordingly, questioning the strength of Social Security systems and the social safety net in general. Financial Planning for Retirement (FRP) consists of the series of activities involved in the accumulation of wealth to cover needs in the post-retirement stage of life. The negative short-, mid-, and long-term consequences of inadequate Financial Planning for Retirement do not only affect individuals, but also their extended families, homes, eventually producing an unwanted impact on the entire society. The Capacity-Willingness-Opportunity Model has been proposed to understand FPR, combined with Intentional Change Theory, a framework for understanding the process, antecedents and consequences of FPR. From this perspective, we propose this promising model, but there are a large number of variables that have not been included that offer novel ways to deepen our understanding of FPR. A focus on each dimension of the model, the role of age and psychosocial variables associated with demographic indicators such as gender, health status, and migration, allow us to provide a proposal of scientific advancement of FPR.

From a societal standpoint, population aging in the developed countries has intensified pressure on public pension systems ( Annink et al., 2016 ). It now seems clear that society will not be able to guarantee quality of life in retirement unless people save on their own behalf including private (i.e., corporate) pensions leading governments to adopt increasingly active policies designed to involve citizens in Financial Planning for Retirement (FPR). FPR consists of the series of activities involved in the accumulation of wealth to cover needs in the post-retirement stage of life. It is necessary because of the high, mid- and long-term, negative impact of poor planning ( Choi and Jang, 2016 ; Ekici and Koydemir, 2016 ). At the same time, this activity is complex for several reasons. Firstly, most people do not possess the necessary knowledge to make optimal savings and investment decisions. Secondly, individual planning is subject to many factors, such as income, professional career, or health, which, moreover, interact with each other. Thirdly, people may experience anxiety and develop negative attitudes toward contemplating the latter stages of life and planning, ultimately avoiding FPR.

FPR was initially treated as a matter exclusively for economists, accountants and financial advisors. More recently, economists have found “a set of coherent explanatory constructs” useful to understand economic behavior ( García-Gallego et al., 2017 , p. 848) in psychological concepts. At the same time, in psychology, the importance of finances in retirement was admitted ( Topa et al., 2011 ). Academics have progressively incorporated variables from other disciplines in their empirical studies, accumulating evidence for integrated models of retirement planning ( Wong and Earl, 2009 ; Wang and Shultz, 2010 ). A wide range of personal resources has been explored as relevant predictor of successful adjustment to retirement ( Leung and Earl, 2012 ). Despite this, empirical research on FPR has increased either without a theoretical model or with more general models, like the Theory of Reasoned Action.

In 2013, Hershey, Jacobs-Lawson, and Austin proposed a conceptual framework called the “Capacity-Willingness-Opportunity Model” to understand FPR. This model is promising for three reasons. It is specific, because it is designed to explain FPR. It is broad because it includes three dimensions with different types of variables. And it is procedural because it incorporates a temporal dimension, analyzing age and stage, and their interaction with the other facets of the model. As previous research suggested, different patterns of change should be considered when examining retirement outcomes ( Wang, 2007 ).

Three dimensions—capacity, willingness and opportunity to plan for retirement—were proposed by Hershey and his colleagues in their model. Capacity refers to the cognitive factors and skills required to plan and save for retirement, distinguishing one person from the next. Among others, one's knowledge, skills, fluid, and crystallized intelligence, and psychological biases would likely influence the ability to plan and save ( Resende and Zeidan, 2015 ). Meanwhile, willingness consists of the motivational variables that drive planning activities and saving. Hence, this dimension includes the motivational forces and the attitudinal and emotional factors that determine the likelihood that a given individual will begin planning and will sustain the activity over time. These factors are, among others, clarity and nature of one's financial goals, retirement-related fear and anxiety, perceived social norms, and self-image could be linked to the tendency to plan and save. Finally, the opportunity dimension acknowledges the existence of certain external influences, including environmental facilitators and constraints that affect effective financial tasking. Among others, the availability of voluntary retirement saving programs, tax incentives for saving, and financial advisors in the proximal environment would be associated with the tendency to plan and save.

Taken as a whole, the model is procedural. This means that the model holds a main assumption related to the continuity and strengthening of FPR during the course of adulthood. This turns our attention to the role of age in Hershey's model, which is somewhat complex. On the one hand, the continuity assumption implies that a stable pattern of entrenchment of capacity, willingness, and opportunities to plan and save could be expected.

It becomes a habit. Development of the value of FRP, like saving in general, is in part based on a person's ability to delay gratification for a long term goal or dream. On the other hand, this pattern of continuity is not immutable. At least three types of influences could lead to changes in FPR: normative age-related influences, normative history-related influences, and non-normative life events. Based on normative age-related influences, workers around 55 years old become more interested in financial planning than younger workers. In Europe, history-related influences could be exemplified by the pension system reform, which increased the population's awareness of the sustainability of future pensions. Finally, non-normative life events, such as major health problems, could interfere with FPR. Elimination of mandatory retirement age in various countries has changed a key benchmark of retirement. The development of a portfolio of part-time jobs and choosing which jobs need to be financially compensated opens new possibilities to reframe the concept of retirement. With lengthening of the years of quality and active living, people are searching for meaning and purpose beyond subsistence in the latter stages of life.

The empirical evidence supporting this model still is fragmentary and insufficient. Despite the fact that there is more than a decade's worth of empirical works that have examined partial aspects of the model (e.g., Hershey et al., 1998 , 2007 ; Hershey and Mowen, 2000 ), there are no works that test the complete model. Emerging investigations in this regard have begun to appear ( Jiménez et al., in press ) but they can be clearly improved in design and data collection procedures ( Topa et al., 2017b ).

The evolution of one's life can be interpreted through the intentionality shown about adaptation, learning, and change. This is explained in Intentional Change Theory (ICT; Boyatzis, 2008 ). In this theory and the longitudinal research over the last 50 years about it and its components, explains that the first key discovery on the path to sustained, desired change is articulating a personal vision, or dream. This is not a set of goals, but something bigger and with a longer term framework. It is developed from the question, “If your life were perfect 10–15 years from now, what would your life and work be?” In contrast to goals or elements others have told you should be part of your future, your personal dream invokes neural networks, hormonal systems and psychological states that open the person to new ideas ( Boyatzis et al., 2015 ). Other key elements in ICT are the resonant, trusting relationships that enable a person to explore and refresh in an iterative manner their dream and progress toward it. The role of such coaches or trusted advisors are another element key to a person developing a desired image of the latter stages of life and/or retirement, and an appropriate financial retirement plan.

Despite the fact that Hershey's model provides responses to a wide range of present questions about FPR, various untouched topics offer opportunities for moving forward in this domain. We will briefly discuss them, following the dimensions of the model.

Further Extensions

Related to capacity, additional variables should be considered (See Figure 1 ). First, the Need for Cognitive Closure refers to the individual's desire to obtain clear and definitive responses to a problem ( Webster and Kruglanski, 1994 ). Empirical research reports significant differences between people with high and low need for cognitive closure regarding the quantity of information they process, the intensity of that information, the use of decision rules, and the level of self-confidence in their decisions. Accordingly, people with a high Need for Cognitive Closure are more likely to focus on information that is easy to process, reject complex or incomplete information, decide faster, have an urgent desire to achieve closure and retain it permanently. Its influence has been shown in a broad array of decision-making processes ( Dolinski et al., 2016 ), but it has not yet been fully assessed in FPR. Due to the complexity and uncertainty entailed by FPR, as it implies the processing of complex information and the anticipation of needs with a high degree of uncertainty, we contend that Need for Cognitive Closure offers an interesting avenue to develop Hershey's model, as some empirical study has proposed ( Topa et al., in press ).

Figure 1 . Expanded Model for FPR. Variables in italics reflect the extensions for the original Hershey's Model on FPR.

Secondly, FPR is a complex task that is often accompanied by worries. Thus, metacognition refers to beliefs about one's own cognitive system, the influences that affect it, attention and evaluation of the meaning of one's thoughts ( Wells and Cartwright-Hatton, 2004 ). Due to the complexity of FPR and the worries associated with it, exploring the role of metacognitions is promising, as a recent empirical study showed ( Kiso and Hershey, 2017 ). In particular, positive and negative beliefs about one's own worries, as well as cognitive trust and the self-attention, could play important roles in the relationships between capacity to plan and FPR. There is empirical evidence that supports the joint influence of metacognitions and worry in the development of anxiety in other contexts ( Ryum et al., 2017 ). These same relations should be explored in the area of FPR, using validated instruments like the Meta-Cognitions Questionnaire 30 (MCQ-30; Wells and Cartwright-Hatton, 2004 ). The findings would help to understand why people consider it important to plan but do not carry out specific behaviors of saving and financial management.

As it relates to capacity, the development of one's retirement identity and financial self-efficacy is important in FPR. For past generations, FPR primarily focused on evaluating the adequacy of an individual's income and cash flow sources over a 5–10 year retirement lifespan. Improvements in lifestyle and medical technology have increased life expectancy and provided a 20–30 year increase in human longevity. In a related vein, Donaldson and colleagues showed that a higher personal sense of mastery, a variable near to self-efficacy, significantly mediated the relationships between pre-retirement planning and adjustment ( Donaldson et al., 2010 ). FPR now requires careful evaluations and planning around an individual's future social emotional as well as economic needs.

Although workers may be old enough to fully retire in their 60's, they may not be ready to fully disengage from the workforce. For many, work provides value above and beyond economic gain. Such value includes a regular set of activities that provide time structure, status, identity, a sense of participation in a collective effort, and the opportunity to socialize with co-workers ( Price et al., 1998 ). One's ability to form a view of their ideal self in retirement is a beneficial part of the retirement planning process ( Lunceford, 2017 ).

Ideal self begins as a personal vision, or an image of what kind of person someone wishes to be ( Boyatzis and Akrivou, 2006 ). In the context of retirement, ideal self can be what a person would like to accomplish after they choose to physically or psychologically reduce their commitment to their primary career. This may take the form of paid work or volunteer work on a part-time or full-time basis; it may include work in the same profession, development of a new skillset or vocation, or complete exit from the workforce to a life of leisure.

Ideal self is the driver of intentional change in one's behavior, emotions, perceptions, and attitudes ( Boyatzis and Akrivou, 2006 ). It must also be an image of the kind of person they want to be in their later years. The Ideal Self involves a sense of hope about the future. Hope becomes an emotional tone for the future, instead of regret for a life not lived, fear of diminishing resources, or fear of death and the end game of life.

The development of the ideal self in the retirement planning process puts an image of the desired future at the center of the FRP, not merely financial analysis. It may be instrumental in addressing stress related to the alteration of career identity and finances in retirement. The formation of ideal self has a relationship to understanding an individual's intent to engage in bridge work ( Lunceford, 2017 ). In addition, it positively influences well-being in the pre-retirement process ( Lunceford, 2017 ). Measurement of the ideal self may be done with recent evaluation tools developed by Boyatzis et al. (2010) .

The development of financial self-efficacy is also critical in the FPR process. Financial self-efficacy is a belief that one can be successful financially in certain situations. Self-efficacy is related to self-confidence, motivation, optimism, and the belief that one can cope with a variety of life's challenges ( Bandura, 1997 ). People with high levels of self-efficacy believe they can perform well at specified tasks ( Lown, 2011 ). In recent pre-retirement studies, financial self-efficacy was show to have a positive influence on career decision making, the formation of retirement confidence and well-being ( Lunceford, 2017 ). They believe a desired future is somewhat in their control. In a related vein, the individual experience of aging could influence retirement planning in general and, specifically, FPR. As Heraty and McCarthy (2015) suggested, self-perceptions of aging could influence FPR among older workers, and also post-retirement employment options ( Fasbender et al., 2014 ).

Related to willingness, various affective aspects and personality traits expand future research, based on complex relationships between emotions and decision-making ( Hariharan et al., 2015 ). On the one hand, we should not forget that retirement marks the end of obligatory work and serves as a reminder of aging, failing health and, eventually, death. Unsurprisingly, then retirement can provoke unease, gloom and dread, and would be associated with fear of death, complex emotional phenomenon, which include apprehension both for oneself and for loved ones.

A growing body of empirical evidence shows that fear of death impinges on most spheres of life, and specifically on financial decisions. Despite this fact, only recent studies begin to consider the role of fear of death in explaining FPR ( Topa et al., in press ). Specifically, this study showed that fear of death acts as a moderator in the relationship between financial goals and retirement savings adequacy, mediated by financial behavior among clients of financial advisory firms. These results thus represent one step forward in the investigation of the influence of fear of death on people with strong anti-consumer attitudes, which are more likely to exercise tight control over their finances.

Related to the job attitudes-FPR relationships, previous studies indicate that retirement planning in general has negatively been predicted by job satisfaction and work involvement ( Topa et al., 2009 ). As retirement is a crucial event in the life trajectory, work-related factors would be very relevant as antecedents of quitting one's job. On the one hand are positive attitudes toward the job, as strong engagement and high satisfaction would act as pull factors, influencing the individual decision to delay FPR (i.e., Zappalà et al., 2008 ). On the other, some studies note that work dissatisfaction influenced the decision to exit the organization but not the labor market, so there would no direct effect on FPR ( Perera et al., 2015 ).

On the other hand, personal character traits also could influence FPR, even though little empirical research exists in this area ( Rahimi et al., 2016 ). Procrastination consists of deliberately putting off or delaying an action which the subject nevertheless intends to take, especially where delay is likely to have adverse effects. This personality trait would affect FPR and outcomes, specifically due to the fact that many retirement-related goals are linked to a specific time horizon. This means that retirement goals seem to be imposed by the passage of the time and may have a specific time frame. Initial evidence in this direction has been recently provided by Topa and Herrador-Alcaide (2016) , but only limited to a sample of workers between ages 45 and 63 employed by small- and medium-sized firms in Spain. Some present findings have been summarized in Table 1 .

Table 1 . Summary of recent studies with further extensions of the Hershey's Model.

Additionally, emotional intelligence has been widely researched over the past years due to its moderator role on the relationships between contextual antecedents and desirable personal outcomes. While the first conceptualization of emotional intelligence included appraisal and regulation of emotions, recent research has examined its incremental contribution, beyond personality features' contribution, to different indices of adaptation. As future planning and decision-making should be conceptualized as and adaptive process, also including a specific financial component, people who possess greater abilities in understanding and controlling their emotions could be also better in managing their FPR.

Concerning the opportunity dimension, a great amount of studies have relied on social support ( Topa et al., 2017a ), but the relationships with FPR of both organizational climate for older workers and aging stereotypes should also be taken into account. First, a healthy organization that provides older workers with motivational task design and generates an environment where successful aging is possible could positively influence not only employees' pre-retirement well-being ( Guglielmi et al., 2016 ), but also their FPR. In a very basic sense, due to the fact that stress is resource consuming, healthier organizations seem to encourage their members to concentrate their efforts on future planning. Despite this promissory avenue, at present, no empirical research on these relationships was found.

Second, aging stereotypes widely spread both in organizational and in societal environments could undermine FPR. Despite the fact that direct relationships are difficult to conceive, links between negative stereotypes and FPR should be explored both through their negative effects on retirement self-efficacy ( Valero and Topa, 2015 )—which includes a financial dimension—or through their undermining future career prospects for older workers ( Lytle et al., 2015 ). Moreover, while it would be expected that FPR would significantly increase among older workers, different exit pathways could be observed. Hence, the specific role of career transitions and bridge employment on FPR also deserves further exploration, as recent revision stated ( Earl et al., 2015 ).

Few studies examine factors, especially non-financial, that lead to the intent to work in retirement ( Kerr and Armstrong-Stassen, 2011 ) whether for pay or not, full time or part time or a portfolio of part time jobs. The recent study published by Cahill and colleagues with a large national-representative sample of older Americans, showed that bridge employment seems to be driven by other reasons than financial insecurity, both for those with little or medium financial assets. But, the same study found that those with less wealth seem to be more oriented to full time and wage and salary employment ( Cahill et al., 2017 ). Additional studies could be beneficial to workers and employees. In many cases, societal norms place an unwelcomed expectation that individuals must disengage from work at a certain age ( Topa et al., 2018 ). Given that individuals are living longer, age may be in conflict with the stage at which an individual is socially and emotionally ready to exit the workforce ( Kim and Moen, 2001 ).

Anxiety about having to retire to conform to cultural expectations may limit employee morale and productivity. Also, the continued practice of expecting retirement based on age may promote negative stereotypes in the workplace that devalue meaningful contributors and place similar anxiety on their successors ( Phillipson, 2012 ). Further study on factors that lead to post retirement work intention will inform employers on how to positively assist employees during late stage career transitions and retain key talent for longer periods. It will also provide advocacy and support for individuals who engage in the FPR process.

A recent study showed that helping workers understand and identify opportunities available to them in retirement has a positive relationship to their intent to work in retirement ( Lunceford, 2017 ). Also, there is a relationship between an individual's level of financial self-efficacy and their intent to work in retirement ( Lunceford, 2017 ). Given that a meaningful amount of education regarding retirement planning comes from employer sponsored plans the development of financial self-efficacy and a post retirement work plan concurrently could advance the model for FPR among the largest audience.

Moreover, related to the role of age in the model, a further development should consider that age is a multidimensional concept, which can be assessed under the chronological lens, but also as perceived, desired or group-referent age. However, at present, chronological age has been the only indicator used in FPR research ( Hershey et al., 2013 ). In this sense, differentiating between functional, psychosocial, organizational, and lifespan age, as Scherbov and Sanderson (2016) suggested, allows us to explore their impact on FPR.

Further model development should explore remote antecedents, not yet included, which would help us to refine our understanding of FPR. Among others, parental financial socialization is one of the most widely assessed remote predictors of economical behavior among adolescents or college students ( Trzcinska and Goszczynska, 2015 ), but there is a lack of studies applying it to older workers. Only one recent study ( Palaci et al., 2017 ) considered its influence on FPR. Its findings show that parental financial socialization directly and indirectly influences FPR, through the mediation of financial literacy, financial planning decisions, and financial management. Moreover, parental financial behavior acts as a positive model for the development of financial literacy and skills and for decisions about FPR, opening future lines of early intervention.

Lastly, demographic characteristics, such as gender and health status, have been related to FPR ( Zyphur et al., 2015 ). Despite which, due to their limited explanatory power per se , further research should be focused on gender-related variables, such as gender stereotypes, gender pay gap and gender differences in the Ultimatum Game behavior, in order to better understand why gender differences in FPR continue to emerge ( Topa et al., 2017b ).

In the same sense, the relationship between health and FPR may be complex. Firstly, we must remember that health can affect income, because illness limits access to better jobs and makes saving more difficult. Secondly, illness can influence subjective perceptions of income adequacy because poor physical and mental health can bias these affectively loaded measures. Thirdly, combinations of stressful events such as financial difficulties can make people more vulnerable when a negative event occurs. In this light, income may be more important for people who have suffered a decline in health than for those who have not ( Han et al., 2015 ). Taking into account this complexity ( Allen and Laborde, 2017 ), mutual influences among health status and FPR deserve further exploration.

Finally, a relevant demographic indicator, that has not been mentioned by Hershey et al. (2013) , or even empirically explored, is migration status. Very little previous research has analyzed FPR among immigrants in Europe with large representative samples ( Topa et al., 2012 ). Despite this, recent studies suggested that not only objective features, such as migration seniority, and also subjective social mobility, but also one's expectation about the possibility to move upward in the society ( Huang et al., 2017 ), could influence immigrants' FPR. Both immigration status and acculturation have been showed as predictors of occupation health and long-term well-being for migrating workers ( Vîrgă and Iliescu, 2017 ). Taking into account that migration is a global but enormously diverse phenomenon, specific patterns of FPR among temporal, circular and permanent immigrants need to be explored, mainly due to the fact that immigrants are frequently among the disadvantaged and less financially prepared groups.

Implications

We hope that this brief review of unexplored topics illustrates both the complexity and the necessity of serious consideration of FPR. The benefits of more research will be societal, increasing publically funded costs of pensions and health care systems ( Annoni and Weziak-Bialowolska, 2016 ). It could also include individual-level reasons, such as the strong influence of FPR on later financial and general well-being. The research should have sufficient sample size to allow for multivariate, causal and longitudinal analysis. Studies should be tiered, examining FRP of people in their 30's, 40's, 50's, 60's, and later.

Among other desirable consequences, more comprehensive models on FPR could encourage novel interventions for improving financial management ( Harkin, 2017 ). It is likely that coaching people to their personal vision would help create a hopeful FRP, as well as voluntary participation in training programs, which in the long term guarantee updated skills for older workers ( Sousa-Ribeiro et al., 2017 ). Such a plan might have more adherence and sustainable attention than plans developed through financial or another lens ( Maurer and Chapman, 2017 ). Late career management should be considered as a novel field of expanded consequences of FPR ( Wang and Wanberg, 2017 ).

There is also a social policy implication of expanded research. Considering that the worst blow “against human cognitive control abilities are retirement laws” ( Hommel and Kibele, 2016 , pp. 1184), we need to ask ourselves if the best FPR strategy could be to promote older people's work ability. Changing labor laws to remove retirement age restrictions might create a more accurate incentive to FRP. All of this would serve a purpose of helping people to work longer and guarantee long-term quality of life.

Author Contributions

All authors listed have made substantial, direct, and intellectual contribution to the present paper.

Conflict of Interest Statement

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

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Keywords: retirement, financial planning, ideal self, personal vision, retirement planning

Citation: Topa G, Lunceford G and Boyatzis RE (2018) Financial Planning for Retirement: A Psychosocial Perspective. Front. Psychol . 8:2338. doi: 10.3389/fpsyg.2017.02338

Received: 14 September 2017; Accepted: 22 December 2017; Published: 24 January 2018.

Reviewed by:

Copyright © 2018 Topa, Lunceford and Boyatzis. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Gabriela Topa, [email protected]

Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.

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In late October 2022, Elon Musk officially took Twitter private and became the company’s majority shareholder, finally ending a months-long acquisition saga. He appointed himself CEO and brought in his own team to clean house. Musk needed to take decisive steps to succeed against the major opposition to his leadership from both inside and outside the company. Twitter employees circulated an open letter protesting expected layoffs, advertising agencies advised their clients to pause spending on Twitter, and EU officials considered a broader Twitter ban. What short-term actions should Musk take to stabilize the situation, and how should he approach long-term strategy to turn around Twitter? Harvard Business School assistant professor Andy Wu and co-author Goran Calic, associate professor at McMaster University’s DeGroote School of Business, discuss Twitter as a microcosm for the future of media and information in their case, “Twitter Turnaround and Elon Musk.”

• 06 Jun 2023

The Opioid Crisis, CEO Pay, and Shareholder Activism

In 2020, AmerisourceBergen Corporation, a Fortune 50 company in the drug distribution industry, agreed to settle thousands of lawsuits filed nationwide against the company for its opioid distribution practices, which critics alleged had contributed to the opioid crisis in the US. The $6.6 billion global settlement caused a net loss larger than the cumulative net income earned during the tenure of the company’s CEO, which began in 2011. In addition, AmerisourceBergen’s legal and financial troubles were accompanied by shareholder demands aimed at driving corporate governance changes in companies in the opioid supply chain. Determined to hold the company’s leadership accountable, the shareholders launched a campaign in early 2021 to reject the pay packages of executives. Should the board reduce the executives’ pay, as of means of improving accountability? Or does punishing the AmerisourceBergen executives for paying the settlement ignore the larger issue of a business’s responsibility to society? Harvard Business School professor Suraj Srinivasan discusses executive compensation and shareholder activism in the context of the US opioid crisis in his case, “The Opioid Settlement and Controversy Over CEO Pay at AmerisourceBergen.”

• 16 May 2023
• In Practice

After Silicon Valley Bank's Flameout, What's Next for Entrepreneurs?

Silicon Valley Bank's failure in the face of rising interest rates shook founders and funders across the country. Julia Austin, Jeffrey Bussgang, and Rembrand Koning share key insights for rattled entrepreneurs trying to make sense of the financing landscape.

• 27 Apr 2023

Equity Bank CEO James Mwangi: Transforming Lives with Access to Credit

James Mwangi, CEO of Equity Bank, has transformed lives and livelihoods throughout East and Central Africa by giving impoverished people access to banking accounts and micro loans. He’s been so successful that in 2020 Forbes coined the term “the Mwangi Model.” But can we really have both purpose and profit in a firm? Harvard Business School professor Caroline Elkins, who has spent decades studying Africa, explores how this model has become one that business leaders are seeking to replicate throughout the world in her case, “A Marshall Plan for Africa': James Mwangi and Equity Group Holdings.” As part of a new first-year MBA course at Harvard Business School, this case examines the central question: what is the social purpose of the firm?

• 25 Apr 2023

Using Design Thinking to Invent a Low-Cost Prosthesis for Land Mine Victims

Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) is an Indian nonprofit famous for creating low-cost prosthetics, like the Jaipur Foot and the Stanford-Jaipur Knee. Known for its patient-centric culture and its focus on innovation, BMVSS has assisted more than one million people, including many land mine survivors. How can founder D.R. Mehta devise a strategy that will ensure the financial sustainability of BMVSS while sustaining its human impact well into the future? Harvard Business School Dean Srikant Datar discusses the importance of design thinking in ensuring a culture of innovation in his case, “BMVSS: Changing Lives, One Jaipur Limb at a Time.”

• 18 Apr 2023

What Happens When Banks Ditch Coal: The Impact Is 'More Than Anyone Thought'

Bank divestment policies that target coal reduced carbon dioxide emissions, says research by Boris Vallée and Daniel Green. Could the finance industry do even more to confront climate change?

The Best Person to Lead Your Company Doesn't Work There—Yet

Recruiting new executive talent to revive portfolio companies has helped private equity funds outperform major stock indexes, says research by Paul Gompers. Why don't more public companies go beyond their senior executives when looking for top leaders?

• 11 Apr 2023

A Rose by Any Other Name: Supply Chains and Carbon Emissions in the Flower Industry

Headquartered in Kitengela, Kenya, Sian Flowers exports roses to Europe. Because cut flowers have a limited shelf life and consumers want them to retain their appearance for as long as possible, Sian and its distributors used international air cargo to transport them to Amsterdam, where they were sold at auction and trucked to markets across Europe. But when the Covid-19 pandemic caused huge increases in shipping costs, Sian launched experiments to ship roses by ocean using refrigerated containers. The company reduced its costs and cut its carbon emissions, but is a flower that travels halfway around the world truly a “low-carbon rose”? Harvard Business School professors Willy Shih and Mike Toffel debate these questions and more in their case, “Sian Flowers: Fresher by Sea?”

Is Amazon a Retailer, a Tech Firm, or a Media Company? How AI Can Help Investors Decide

More companies are bringing seemingly unrelated businesses together in new ways, challenging traditional stock categories. MarcAntonio Awada and Suraj Srinivasan discuss how applying machine learning to regulatory data could reveal new opportunities for investors.

• 07 Apr 2023

When Celebrity ‘Crypto-Influencers’ Rake in Cash, Investors Lose Big

Kim Kardashian, Lindsay Lohan, and other entertainers have been accused of promoting crypto products on social media without disclosing conflicts. Research by Joseph Pacelli shows what can happen to eager investors who follow them.

• 31 Mar 2023

Can a ‘Basic Bundle’ of Health Insurance Cure Coverage Gaps and Spur Innovation?

One in 10 people in America lack health insurance, resulting in $40 billion of care that goes unpaid each year. Amitabh Chandra and colleagues say ensuring basic coverage for all residents, as other wealthy nations do, could address the most acute needs and unlock efficiency.

• 23 Mar 2023

As Climate Fears Mount, More Investors Turn to 'ESG' Funds Despite Few Rules

Regulations and ratings remain murky, but that's not deterring climate-conscious investors from paying more for funds with an ESG label. Research by Mark Egan and Malcolm Baker sizes up the premium these funds command. Is it time for more standards in impact investing?

• 14 Mar 2023

What Does the Failure of Silicon Valley Bank Say About the State of Finance?

Silicon Valley Bank wasn't ready for the Fed's interest rate hikes, but that's only part of the story. Victoria Ivashina and Erik Stafford probe the complex factors that led to the second-biggest bank failure ever.

• 13 Mar 2023

What Would It Take to Unlock Microfinance's Full Potential?

Microfinance has been seen as a vehicle for economic mobility in developing countries, but the results have been mixed. Research by Natalia Rigol and Ben Roth probes how different lending approaches might serve entrepreneurs better.

• 16 Feb 2023

ESG Activists Met the Moment at ExxonMobil, But Did They Succeed?

Engine No. 1, a small hedge fund on a mission to confront climate change, managed to do the impossible: Get dissident members on ExxonMobil's board. But lasting social impact has proved more elusive. Case studies by Mark Kramer, Shawn Cole, and Vikram Gandhi look at the complexities of shareholder activism.

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8 Keys to Good Financial Plans

While there are many ways to go about developing a financial plan—do it yourself, use a robo-advisor, work with a financial planner, or a combination thereof—Schwab has identified eight critical components every plan should include, regardless of the method used to create it. So, what does a good financial plan look like?

1. Setting financial goals

You can't make a financial plan until you know what you want to accomplish with your money—so whether you're creating it yourself or working with a professional, your plan should start with a list of your goals, both big and small, and the time horizons to accomplish them. Doing so can help to organize each objective by how soon you'll need the money:

• Short-term goals are those you hope to achieve in the next five years, such as paying off debt or building an emergency fund.
• Medium-term goals are those you hope to achieve in the next five to 10 years, such as the down payment on a home or starting your own business.
• Long-term goals are those that are 10 or more years away, including saving for college and, of course, retirement.

For each goal, specify a dollar figure and a target date. "The more specific your goals, the easier it is to measure your progress toward them," said Rob Williams, managing director of financial planning at the Schwab Center for Financial Research.

A host of online tools can help you run the numbers, weigh competing priorities, and determine the best course of action for you. Also, if you have multiple goals to work toward, a robo-advisor, or automated investing platform, can help you weigh the importance of each goal, ranking them by needs, wants, and wishes.

Any time is a good time to establish a financial plan.

Ideally, you start investing for financial goals early in life, but any time is a good time to check in on your current financial situation and assess how you're doing. Are you still on track? Do you have other goals you hadn't previously considered? Having a financial plan helps you assess where you are today and where you want to go next.

2. Net worth statement

Knowing your net worth today can serve as a baseline for framing your financial goals and setting a target for your net worth at some point in the future, like in retirement. To determine your net worth, make a list of all your assets (bank and investment accounts, real estate, valuable personal property) and another one of all your debt (credit cards, mortgages, or student loans). Your assets minus your liabilities equals your net worth.

"Don't be discouraged if your liabilities outweigh your assets," Rob said. "That's not uncommon when you're just starting out—especially if you have a mortgage and student loans."

3. Budget and cash flow planning

Your budget is really where the rubber meets the road, planning-wise. It can help you determine where your money is going each month and where you can cut back to meet your goals.

A budget calculator can help ensure you don't overlook irregular but important expenses, such as car repairs, out-of-pocket health care costs, and real estate taxes. As you're compiling your list, separate your expenses into two buckets: must-have items like groceries and rent, and nice-to-haves like eating out and gym memberships.

When considering how your goals fit into your budget, you may want to pressure-test it using "what if" scenarios: What if you want or need to retire earlier? What if you downsized your mortgage? Some robo-advisors offer tools that allow you to adjust certain assumptions to see how they could affect your savings strategy.

4. Debt management plan

Debt is sometimes treated like a four-letter word, but not all debt is bad debt. A mortgage, for example, can help build equity—and boost your credit score in the bargain. High-interest consumer debt like credit cards, on the other hand, can weigh heavily on your credit score. Plus, every dollar you pay in finance charges and interest is one you can't put toward other goals.

If you have high-interest debt, make sure you create a plan that can help you pay it off as quickly as possible. If you're not sure where to start, a financial advisor can help you prioritize, then determine how much of your budget should go toward your debt each month.

5. Retirement plan

An old guideline says you'll need approximately 80% of your present income in retirement. However, this assumes that retiring will free you from any work-related expenses, that you've paid off your mortgage, that any children will be financially independent, and you'll likely fall into a lower tax bracket.

It's also important to keep in mind that Medicare doesn't cover everything, and health care expenses that Medicare doesn't cover—such as long-term care—can add up quickly. You also might spend more on other things in retirement, like travel, dining out, gifts, or financial support to a relative or friend.

Plugging in different scenarios into a retirement savings calculator can help you figure out what you may need in retirement. 

Don't count on the 80% rule 

If you're saving 20% – 30% of your pre-retirement income, then the 80% income-replacement rule is a good place to start. Otherwise, it's safer to aim at covering 100% of your pre-retirement income, minus whatever you're saving for retirement . As with any general rule, there are plenty of exceptions. So be sure to sit down and fine-tune your retirement budget as the time draws near. This should be your top priority because you can borrow for most other goals but not for retirement.

6. Emergency funds

When something unexpected happens—say you lose your job or get hit with an unexpected medical bill—an emergency fund can help you avoid tapping your long-term savings to make ends meet.

It's generally a good idea to save enough to cover at least three months'—but ideally six months'—worth of essential living expenses (for example, groceries, housing, transportation, and utilities). Save this money in a checking or savings account so you can access it in a hurry should the need arise.

7. Insurance coverage

Insurance is an important part of protecting your financial downside—but try to ensure you're not overpaying for coverage you don't need and make sure to cover all your bases:

• Health insurance : Without it, even routine care can cost a pretty penny, while a serious injury or hospital stay could set you back tens of thousands of dollars. As you get older, you may want to consider long-term care insurance , as well.
• Disability insurance : This coverage protects you and your family in case you're unable to work. Employer-provided disability insurance typically replaces about 60% of your salary.
• Auto and homeowners'/renters' insurance : If you own a car or home—or rent and can't afford to replace possessions out of pocket—make sure you're adequately protected.
• Life insurance : This is generally a good idea for those with dependents. Work with an insurance agent to understand what type of—and how much—coverage makes the most sense for you.

8. Estate plan

At a minimum, most people want a will in place, which states your final wishes with regards to your assets, dependents, and who you want to administer your estate. You should also keep the beneficiaries of your insurance policies and retirement accounts up to date. Also consider establishing powers of attorney for financial and health care decisions, in case you become incapacitated.

For help getting started or tackling more complex estate-planning tasks, consider working with an estate attorney or a qualified financial planner.

Learn more about financial planning

5 times in life when financial planning matters most.

9 Comprehensive Financial Planning Topics

This article covers the 9 comprehensive financial planning topics and a high-level explanation of the differences between financial planning and investment management.

Let’s start by answering the question “what is financial planning”? It’s going to depend on the financial advisor, but a comprehensive financial plan will tackle these 9 topics.

1. Cash flow analysis and budgeting

We’ll understand where your money currently flows to and redirect it so that each facet of your life gets dollars allocated to it.

2. Goal planning

It’s time to think big and design a fulfilled life. Be kind to yourself when your goals change because the only constant thing in life is change and so will your goals as life ebbs and flows.

3. Debt management

Debt management is balanced with other goals in your plan by using different techniques so that everything that is important to you gets worked on.

4. Insurance and risk management

This topic is the least favored of them all but shouldn’t be overlooked. This will protect all the work we’ve been doing with your plan and investments should you not be here to see it to completion.

5. 401(k) investment allocation and stock options

We’ll review your 401(k) investment selections to make sure you’re not taking too much risk or not being too conservative. Equity-based compensation is a tricky topic since there are different types and tax impacts.

6. Estate planning

When we die our assets go into 3 buckets, family, charity, and government. RADIANT Wealth Planning, LLC doesn’t give legal advice but works closely with estate attorneys to draft those documents that will then be our foundation for your legacy.

7. Tax planning

We’ll utilize the most up-to-date tax law so that we’re creating tax-effective strategies to maximize your investments and income.

8. Education funding

Savings could be for K through 12 education, college, university, and/or a trade school. Parents, grandparents, aunts, uncles, and even friends can save for a little one’s education.

9. Financial independence

Wanting to be financially independent at a certain age could be the most rewarding goal. When do you want to make work optional? When do you want to be financially independent?

Difference between financial planning and investment management

Financial planning is everything I just described; it’s creating a plan that is being continuously modified as life happens to achieve your goals. Once the plan is created then the investment accounts are established to achieve the goals that are financially dependent.

RADIANT Wealth Planning, LLC is a fee-only financial planning and investment management firm in Newport Beach, CA.

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Welcome to our blog where we share tips and advice on all topics that help women meet their financial goals.

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Top 140 Finance Research Paper Topics

Why finance topics? The search for interesting finance topics is a constant one. Of course, this is understandable because knowledge of hot topics in finance puts you ahead of the game. Students or researchers who major in business will, at one point or the other in their careers, make presentations, and submit research papers, essays,or help with dissertation or projects. With the headache of writing these papers aside, the challenge of picking finance topics always looms around. We have, therefore, carried out extensive research to present you with these 30 finance topics that will make your paper worth reading! When in doubt, this list of finance topics will surely come in handy to shed some light on that darkness!

Finding Excellent Topics in Finance

We offer you 30 researchable topics in finance. But why should we only catch fish for you if we can teach you how to fish too? The need to find unique topics in finance is on the increase. Here are some excellent tips that will help you choose appropriate finance topics:

• Find out unanswered questions from previous research works or develop on areas that require additional study.
• Read several theses to form ideas.
• Check economics topics . They may be more general but you can narrow down some of them.
• Search online for related topics that are unique, or make them unique to suit your purpose.
• Discuss your chosen topic with other students or people who have experience writing dissertations asking for their input.

Research Topics In Finance

In financial research, unique topics are pivotal to the overall success of the study. The reason for this is simple. Now put yourself in the shoes of professors who have read hundreds of theses and essays. They already know common topics that students like to write or work on. A hot research topic in finance will surely catch the attention of your professor and will likely earn you better grades. Writing finance research papers becomes much easier when you have superb finance research topics.

Here is a finance research topics list that will spark people’s interest in your research work and make your finance research paper worth reading! Ready for these research topics in finance? Read on!

• Merger and Acquisition: An Analytical Study of the Benefits and Set-backs.
• Capital Asset Pricing Model: Possible Solutions to its Inadequacies.
• Global Financial Crisis: A Critical Study of the Role of Auditors and Stakeholders.
• The Impact of Manipulating the Commodity Market on Future Commerce.
• Continuous-time Models: An exhaustive Comparative Analysis of its Application in Divers financial Environments.
• How Speculations Undermine the Stability of Banking in Asian Markets.
• Branding: Its Effect on Consumer Behavior.
• An effective strategy for managing inventory and controlling your budget.
• An analytical report on the various investments in tax-saving products.
• Using a systematic investment strategy to build stability for retail investments.
• How income tax is planned and implemented in India’s economy.
• A detailed analysis of how the Indian banking system operates.
• How does multi-level marketing work in different economies around the world?
• A detailed report on electronic payment and how it can be improved.
• A case study regarding senior citizen investment portfolios.
• Are there potential risks and rewards when comparing savings to investments?
• Is ratio analysis an effective component of financial statement analysis?
• How the Indian economy functions with its current banking operations.

Finance Research Topics For MBA

Here are some great finance research topics you can use toward your MBA. It’s sure to intrigue your professor and get you to look at finance from a different perspective.

• Investment analysis of a company of your choice.
• A detailed report on working capital management.
• Financial plans and considerations for saving taxes and salaried employees.
• A detailed analysis of the cost and costing models of the company of your choice.
• The awareness of investments in financial assets and equity trading preference with financial intermediaries.
• The perspective of investors and their involvement with life insurance investments.
• A detailed analysis of the perception of mutual fund investors.
• The comparative study between UIL and the traditional products.
• A detailed report on how the ABC company manages cash.

Corporate Risk Management Topics

These are some key topics you can use relating to corporate risk management.

• A detailed report on the fundamentals of corporate risk management.
• The analytical concepts relating to effective corporate and financial management within a company.
• How does corporate risk management affect the financial market and its products?
• What are risk models and how are they evaluated?
• How is market risk effectively measured and managed in today’s economy?
• How can a company be vigilant of potential credit risks they can face?
• What are the differences between operational and integrated risks in the corporate world?
• Is liquidity an effective strategy to lower financial risk to a company?
• How risk management can connect with and benefit investment management.
• The current issues that are affecting the modern marketplace and the financial risks they bring.

Healthcare Finance Research Topics

These are some key topics you can use relating to healthcare finance research.

• Is it better for the government to pay for an individual’s healthcare?
• The origins of healthcare finance.
• An analysis of Canada and their healthcare finance system.
• Is healthcare financing a right or a privilege?
• The changing policies of healthcare in the U.S.
• Can healthcare be improved in first-world countries?
• Can the healthcare system be improved or remade?
• How much influence does the government have on healthcare in a country?
• The impact of growing global health spending.
• Is free healthcare achievable worldwide?

Corporate Finance Topics

Corporate finance deals with processes such as financing, structuring of capital, and making investment decisions. It seeks to maximize shareholder value by implementing diverse strategies in long and short-term financial planning.

Corporate finance research topics broadly cover areas like tools for risk management, trend research in advanced finance, physical and electronic techniques in securities markets, research trends in advance finance, investment analysis, and management of government debt. The following corporate finance topics will surely minimize any risk of mistakes!

• Using the Bootstrapped Interest Rates to Price Corporate Debt Capital Market Instruments.
• Corporate Organizations: The Impact of Audit Independence on Accountability and Transparency.
• Buybacks: A Critical Analysis of how Firms can Buy Back at Optimal Prices.
• Merge and Acquisitions: Reasons why Firms still Overpay for bad Acquisitions.
• Corporate Finance: Ethical Concerns and Possible Solutions.
• Understanding the investment patterns relative to smaller and medium-capitalization businesses.
• A detailed analysis of the different streams of investment relating to mutual funds.
• Equity investors and how they manage their portfolios and perception of potential risks.
• How does investor preference operate in the commodity market in Karvy Stock Broking Limited?
• An analysis of the performance of mutual funds in the public and private sectors.
• Understanding how Videcon manages its working capital.
• The Visa Port trust and how it conducts ratio analysis.
• How the gold monetization scheme has affected the Indian economy and banking operations.
• How does SWIFT work and what are the potential risks and rewards?
• A detailed analysis of the FMC and SEBI merger.

Business Finance Topics

Every decision made in a business has financial implications. It is, therefore, essential that business people have a fundamental understanding of finance. To show your knowledge, you must be able to write articles on finance topics in areas such as financial analysis, valuation, management, etc. Here are some juicy business finance topics!

• Application of Business Finance: Its importance to the Business Sector.
• The Importance of Business Finance in the Establishment of Business Enterprises.
• Modernization of Business: Roles of Business Finance in Business Modernization.
• A detailed study on providing financial aid to self-help groups and projects.
• Is tax an effective incentive for selling life insurance to the public?
• Understanding how the performance of mutual funds can change within the private and public sectors.
• Is there a preference for different investment options from financial classes?
• A detailed analysis of retail investors and their preferences and choices.
• A study on investors and their perspective on investing in private insurance companies.
• How analyzing financial statements can assess a business’s performance.
• Increasing the accountability of corporate entities.
• Ethical concerns connected to business finance and how they can be managed.
• The level of tax paid by small to medium businesses.

International Finance Topics

As the world is now a global village, business transactions occur all around the world. No more are we limited to local trade, and this is why the study of international is essential and relevant. Here are some international finance topics that will suit your research purpose!

• Stock Exchange: How Important are the Functions of a Bank Office?
• Global Economic Crises: Possible Precautions to prevent Global Financial crisis.
• Bond Rating: the Effect of Changes on the Price of Stocks.
• How the Banking Industry can Decrease the Impact of Financial Crisis.
• Is it possible for a country to budget funds for healthcare for the homeless?
• The negative impact of private healthcare payments on impoverished communities.
• What sectors in healthcare require more funding at the moment?
• The dilemma of unequal access to adequate healthcare in third world countries.
• Can cancer treatment be more inexpensive to the public?
• The problem with the high pricing of medication in the U.S.
• Is there a better way to establish healthcare financing in the U.S?
• What are the benefits of healthcare finance systems in Canada and the UK?
• How can third-world countries improve their healthcare systems without hurting their economy?
• Is financing research a priority in healthcare and medicine?
• Does free healthcare hurt the tax system of a country?
• Why is free and privatized healthcare present in different economies?
• How does government funding affect healthcare finance systems?
• How do patient management systems work?
• Where does affordable healthcare financing fit in growing economies?
• The economic impact of COVID-19 in various countries.
• The healthcare policies of the Serbian government.

Finance Research Paper Ideas

Writing a research paper requires an independent investigation of a chosen subject and the analysis of the remarkable outcomes of that research. A finance researcher will, therefore, need to have enough finance research paper topics from which to choose at his fingertip. Carefully selecting a finance thesis topic out of the many finance research papers topics will require some skill. Here are some exciting finance paper topics!

• Behavioral Finance versus Traditional Finance: Differences and Similarities.
• Budgetary Controls: The Impact of this Control on Organizational performance.
• Electronic Banking: The Effect of e-Banking on Consumer Satisfaction.
• Credit and Bad Debts: Novel Techniques of management in commercial Banks.
• Loan Default: A Critical Assessment of the Impact of Loan Defaults on the Profitability of Banks.
• A detailed analysis of the best risk management methods used in the manufacturing industry.
• Identifying and measuring financial risks in a derivative marketplace.
• Exploring the potential risks that can occur in the banking sector and how they can be avoided.
• The risks that online transactions bring.
• What are the methods used to ensure quantitive risk management is achieved?
• A better understanding of policy evaluation and asset management.
• What makes traditional finance so different from behavioral?
• The significance of budgetary control in a corporate organization.
• How do loans benefit the profitability of banks?
• How do commercial banks assist their clients that are in bad debt?
• The various considerations we need to be aware of before making investment decisions.

Personal Finance Topics

Personal finance covers the aspects of managing your money, including saving and investing. It comprises aspects such as investments, retirement planning, budgeting, estate planning, mortgages, banking, tax, and insurance. Researching in this area will surely be of direct impact on the quality of living. Here are some great personal finance topics that are eager to have you work on them!

• Evaluation of Possible Methods of Saving while on a Budget.
• The Effect of Increase in Interest Rate and Inflation on Personal Finance.
• Benefits of Working from Home to both Employers and Employees.
• Will dental services be considered an essential medical service soon?
• Is affordable or free healthcare a right that everyone should be entitled to?
• The best ways to save money while on a tight budget.
• What happens to personal finance when inflation and interest rates rise?
• The financial benefits of working from home.
• Does innovations in personal finance act as an incentive for households to take risks?
• A detailed analysis of credit scores.
• The importance of credit and vehicle loans.
• A detailed analysis of employee benefits and what should be considered.
• The effect of tax on making certain financial decisions.
• The best ways to manage your credit.
• The difficulties that come with mobile banking.

Finance Topics For Presentation

Sometimes, you may need to present a topic in a seminar. The idea is that you can whet the appetite of your audience with the highlights of your subject matter. Choosing these finance seminar topics requires a slightly different approach in that you must be thoroughly familiar with that topic before giving the presentation. Interesting and easy-to-grasp finance topics are, therefore, necessary for presentations. Here are some topic examples that fit perfectly into this category.

• Analysis of the Year-over-Year Trend.
• Maximizing Pension Using Life Insurance.
• The Architecture of the Global Financial System.
• Non-communicable diseases and the burden they have on economies.
• Is there a connection between a country’s population and its healthcare budget?
• The spending capability of medical innovations in a third-world economy.
• The long-term effects of healthcare finance systems in the U.S.
• A detailed analysis of pharmaceutical marketing in eastern Europe.
• Understanding the reduction in medical expenses in Greece.
• Private payment for healthcare in Bulgaria.
• A complete change in healthcare policy worldwide. Is it necessary?
• The significance of electronic banking on the public.
• The evolution of banking and its operations.

So here we are! Surely, with this essay on finance topics that you have read, you’ll need only a few minutes to decide your topic and plunge into proper research! If you need professional help, don’t hesitate to contact our economics thesis writers .

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Navigating longevity with industry leaders at MIT AgeLab PLAN Forum

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How can people better imagine and plan for their future selves? A two-day event hosted at MIT featured two chief executives at the forefront of an emerging industry centered around helping the public prepare for longer lives. Karen Lynch, CEO of CVS, and Penny Pennington, managing partner at Edward Jones, were the opening speakers for an MIT AgeLab symposium highlighting how new technologies, changing consumer preferences, and increasing life expectancy will shift the financial advisory profession into a new industry called longevity planning.

As described by MIT AgeLab Director Joseph Coughlin, longevity planning is the transformation of the financial services and retirement planning industries into a holistic business of advice and services to help people navigate a 100-year lifespan.

The first step toward ensuring quality of life over 100 years is to know how to prepare for it. Is it possible to predict how long each of us can expect to live? Are there tools available that can help people better imagine and empathize with their future selves? Can we imagine advice and planning that is better tailored toward realizing our goals for later life?

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The fireside chat between Lynch of CVS and Pennington of Edward Jones brought together major leaders in health care and finance, two bookends of longevity. “We can help people on their journey to live better, longer,” Lynch said. “The health care system has many entry points. CVS Health brings them together to deliver better health at lower costs through simpler, more convenient experiences. We engage consumers and connect people to care when, where, and how they want it.”

According to research from Edward Jones, financial advisory clients have four main priorities, in order of importance: their health, their family, their purpose, and finally, their financial plan. "During our conversation, Karen and I agreed that longevity planning for both the health and wealth industries has to be transformational, not transactional,” Pennington said. “Our industries need to be focused on advancing wellness — physical, emotional and financial — for our clients and our communities to help more people thrive in every stage of life.” 

A follow-up panel of experts in real estate and retail highlighted trends in consumer behavior. Brian Beitler, founder of Sune, an online retail company, said that contemporary consumers are defined by three qualities: They are more exploratory (and so less loyal), more discerning (due to being more information-saturated) and more influential (that is, more capable of generating success for their preferred products). Janice Dumont, CEO of Advisors Living, a residential real estate company, talked about the importance of crafting immersive experiences for customers who are considering making a large purchase like buying a home — not just providing information, but engaging people.

The second day of the symposium focused on new technologies that have potential to guide longevity planning. Virtual reality, artificial intelligence, and health prediction technologies, among others, are tools that can help people imagine and predict their futures. Each panel was accompanied by a reflection session of financial advisors, who discussed how these new technologies might impact their industry.

In a panel on cutting-edge health diagnostic testing, Li - Huei Tsai, director of MIT's Aging Brain Initiative, discussed the potential of genetic testing to identify patients’ predispositions toward Alzheimer’s disease. Alzheimer’s disease, which remains without a cure, could be better managed if identified as a risk earlier in life. Rita Shaknovich, vice president of medical affairs at Grail Inc., a health diagnostic company, discussed the development of technologies that can detect cancer at early stages through a blood test, with the aim of rendering the emperor of maladies a manageable chronic condition instead of an often fatal one.

A later panel focused on applications of artificial intelligence in medicine and health care and its implications for other industries, including financial services. Pranav Rajpurkar, assistant professor of biomedical info r matics at Harvard Medical School, discussed recent studies finding that when it came to providing medical advice online, an AI chatbot was viewed as more empathetic than a human doctor. For financial advisors and other professionals, this finding suggests both the promise and portent of AI-driven chatbots in client-facing industries.

Joe Kvedar, professor of dermatology at Harvard Medical School, former president of the American Telemedicine Association, and a self-described telemedicine evangelist, highlighted a key limit for new technologies to transform patient care in medicine: reluctance from patients, who may be protective of their privacy and autonomy, to adopt them, even if they are proven effective.

The last session of the symposium discussed the use of virtual and augmented reality (VR and AR) to help people imagine their future selves. Sheng-Hung Lee, a PhD candidate with the MIT AgeLab, outlined his project called Design for Longevity, which uses AR and service design principles to enhance conversations between financial advisors and clients. Sara Wilson, a PhD student with the AgeLab, showcased a VR game that shows people how the future — in this case, the future of the biosphere — might be affected by their choices and behaviors.

The symposium was sponsored and attended by members of the Preparing for Longevity Advisory Network, or PLAN, an MIT AgeLab research consortium that aims to transform the financial services industry to become more engaged in helping people better prepare for and enjoy longer lifespans. PLAN members span advisory firms and financial product manufacturers from around the world. 

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A Review of a Decade of Financial Behavior Research in the Journal of Family and Economic Issues

• Published: 14 September 2020
• Volume 42 , pages 131–141, ( 2021 )

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• Kyoung Tae Kim   ORCID: orcid.org/0000-0002-0673-721X 1 &
• Jae Min Lee 2  

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Thirty-three among 441 research articles published in the Journal of Family and Economic Issues during the past decade (2010–2019) examined financial behavior. Through content analysis, we describe what these studies have discovered and discussed. Savings, wealth, and family issues were the keywords chosen most frequently. Studies primarily implemented quantitative analyses, such as regression and regression-like analysis, using secondary data collection methods, and the majority investigated financial behaviors of US individuals or households. Based on the findings, future research directions on financial behaviors are provided.

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Kim, K.T., Lee, J.M. A Review of a Decade of Financial Behavior Research in the Journal of Family and Economic Issues. J Fam Econ Iss 42 (Suppl 1), 131–141 (2021). https://doi.org/10.1007/s10834-020-09711-x

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Accepted : 08 September 2020

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DOI : https://doi.org/10.1007/s10834-020-09711-x

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College graduation season is underway, and nearly 3.2 million students are slated to pick up their associate or bachelor’s degree diplomas this spring, according to the National Center for Education Statistics. When the cap tosses and festivities wrap up, it’ll be time for job applications, apartment leases — and student loan payments.

It can be challenging to navigate major bills and student debt repayment. This year, new payment plans may complicate matters further. 

Investing time now to research repayment options can pay off, says Emma Crawford, a certified financial planner and student loans expert at Perk Planning, a registered financial advisory firm in Madison, Wisconsin: “It's not easy, but it's worth it because it can save them a lot of money in the long run.”

If you’re leaving campus this year and starting your first full-time job, here’s how to prepare for impending student loan bills and a new financial reality.

Complete student loan exit counseling

If you have federal loans, you must complete mandatory student loan exit counseling when you leave school. The process takes about 30 minutes and can be done online at StudentAid.gov . Exit counseling will ask you to update your contact information, walk you through how much you owe and explain the basics of student loan repayment.

Many universities require students to complete loan exit counseling before they will post their official diplomas, Crawford says.

Private student loans won’t appear on StudentAid.gov. To check your loan amount and terms, including any exit counseling requirements, refer to the documents you signed when you took out the loan and reach out to your lender.

Get to know your servicer or lender

Federal student loan servicers act as intermediaries between borrowers and the Education Department. You were assigned a servicer when you first took out your loans. Your servicer’s customer service department can help you with individual questions about your loans and repayment options.

Your federal student loan servicer is listed on the right side of your StudentAid.gov dashboard. You’ll have to set up a separate account on your servicer’s website to manage your bills.

“Understanding who your servicer is is really important, because a lot of people don't know that they're not going to be paying on StudentAid.gov. They have to pay their servicer,” Crawford says.

Spend a few minutes logging into your servicer account and updating your contact information. Here, you can also enroll in autopay, so you don’t have to manually pay your student loan bill each month. Autopay also gives you a 0.25 percentage point interest rate deduction on your bills.

Choose a repayment plan

If you don’t pick a specific student loan repayment plan , your servicer will automatically place you on the standard repayment plan. This splits your total debt into 10 years' worth of monthly payments, plus interest.

The Education Department’s loan simulator will give you estimates for how much you could pay on various repayment plans, including how much forgiveness you could get. Take some time to go through the pros and cons of each repayment plan, and learn about how monthly payments are calculated, Crawford says.

The new income-driven SAVE repayment plan is a good fit for many recent graduates, who tend to earn lower salaries as they start their careers. Beginning in July, SAVE will cap undergraduate student loan payments at 5% of discretionary income.

If you’re unemployed or earn less than $32,800 (roughly $15 an hour) as a single household, you’ll qualify for $0 monthly payments and interest won’t build under SAVE — while also making progress toward loan forgiveness. However, this plan could extend your repayment period from 10 years to up to 25 years, depending on how much you owe.

Reach out to your servicer to switch repayment plans. You can also sign up for an income-driven plan like SAVE on StudentAid.gov/IDR .

Repayment options for private student loans vary by lender.

Prepare for your first bill

You have a six-month student loan “grace period” after graduation or dropping below half-time enrollment, during which you don’t have to make federal student loan payments. After the grace period ends, your first bill is due.

If you start a job before the grace period ends and your federal loans are unsubsidized, consider starting repayment anyway. Interest will accrue during the grace period, which could increase the total amount you’ll repay over time. But if you have need-based subsidized loans, there’s no downside to taking advantage of the grace period — interest won’t start building until after the six months end.

“Take advantage of that grace period to try and get your career up and running,” says Scott Stark, a financial coach and certified financial planner at Financial Finesse, a workplace financial wellness company. “Until you have a job and some income, it's just all about trying to keep your expenses as low as you can, trying to avoid getting into debt or getting into situations that you're going to be digging out of a hole.”

Some private student loan lenders offer grace periods after leaving school. Check with your lender for the specifics.

Plan your financial future

Student loan bills might be a major part of your financial life for the next decade or longer. But as a recent graduate, you should also check in with other parts of your financial life to set yourself up for present and future success.

During your grace period, try to save at least $1,000 for emergencies — and once you start your first full-time job, aim to put 10% to 15% of your income into a workplace retirement account, like a 401(k), Stark says.

“Your future self will be so thankful, because of the benefit of how much time you've got for that to compound,” Stark says. “That is an amazing opportunity to get things started on the right foot.”

If your workplace offers a financial wellness counseling benefit, take advantage of it, Stark says. Some jobs even offer student loan repayment benefits , which can help you pay down the debt faster.

On a similar note...

Planful Perform 2024 - customers kick tires on AI, but will financial planning break down the decision silos?

Planful Perform 2024 is in the books - and once again I am wading through a stream of news and interviews. Beyond the expected AI advancements, Planful had no shortage of news announcements: 

• Planful Unveils Solution Hub to Showcase Expansive and Flexible Financial Performance Management Platform Capabilities - Planful
• Planful’s New Product Innovations Enable Finance Automation, Collaboration, and Innovation 

The second release announced a Snowflake connector for data integration, and a Power BI connector for dashboarding (the latter was popular news amongst customers I talked to, who are eager for more dashboarding options with Planful data). 

Forecasting down to the SKU level - why finance collaboration matters

The further I get into the spring event circuit, the more I am struck by the underrated news stories. Yes, there is Planful AI - new generative AI capabilities for finance, along with the prior Planful Predict solutions. I have no shortage of opinions on that topic, but that's not what jumped out at me. I am looking for real world impact, in whatever flavor it appears - as in this standout keynote quote from Planful customer Chosen Foods : 

We forecast all of our revenue in Planful - all the way down to retailer, by store, by SKU velocity.

Call me a finance geek if you want, but that kind of planning granularity impresses me more than the AI demos I've seen on the keynote stage this spring. But have other Planful customers achieved that same result? Time to find out. 

Then there is the issue of finance collaboration - and how to pull it off. Pulling away from spreadsheet addiction is one thing - the bigger job is getting other lines of business to own their numbers, and step into that conversation. Or, if you are daunted by the collaboration challenge, you can just stick with a conventional "send in your annual budget" mentality, and try to convince yourself that your organization is agile enough for what lies ahead. 

Sparking a team collaboration around numbers is high stakes for Planful. Planful may call itself a Financial Performance Management platform, but for Planful to reach its ambitions, it needs bigtime buy-in from HR and Marketing leaders, inside its customers' planning teams. So is collaboration a reality for Planful customers? And if so, how did they pull that off? On the keynote stage, Jim Mancuso, CFO and COO of Chosen Foods shared this: 

Initially, we built that out in conjunction with the sales organization. But the finance organization really owns putting that into Planful. In 2024, we're turning that over to sales, and they're going to be entering that information. We've done a lot of user testing after we've done a lot of education... We've worked out the bugs to make sure, with them, that it's going to be a good experience. We've also done that on the trade side. Our accounting partners are now using Planful as well, whether it's a review of the trial balance, review of the financials prior to publishing. So we're really bringing it through; our next step will also be the HR people/culture partners on the workforce planning side.

Can finance be a strategic business partner? 

Planful's Chief Customer Officer Kimberly Simms asked Mancuso: " Are you seeing any sort of behavioral or cultural changes by getting that financial IQ up across organizations?" He responded: 

What I would say is initially, finance has always been looked at as people who were trying to maybe hold back all the information. We weren't always brought in early on projects, because maybe margin wasn't there. Or: they didn't really want to know what margin was, they wanted to just sell the product.  What's changed in the organization is finance is truly a strategic business partner, not just a financial one. So we're being brought in very early on projects, whether that's aligning on products that might not have the right margin, but how do we maybe come together with scenario planning on that, or understanding what is the art of the possible - and how can we go beyond with what we're doing here? So we really come in early in the process, which has led to really great outcomes - outcomes that might have been clear on the face of the project, and we came out better because of that really good collaboration, and working together with the teams.

AI fits into a vision of a more automated/strategic approach to finance. But now, I think we're getting a better handle on what we need to have in place that AI can't do - or can't fix. That's what I saw at Perform 2024: customers in pursuit of a better finance process, with an open-but-cautious mind on how AI could help them (and, I must say, some wariness about whether they want AI touching their numbers, or whether AI can 'understand' the shifting terrain of their business well enough to do its thing). 

Interest in AI was contingent upon process relevance . When I asked customers about their favorite piece of conference news, the most popular answers were mostly unexpected, like enhancements to Planful's Workforce Planning. Consider this Workforce Planning comment from my interview with customer Luke Metzger, Financial Systems and Reporting Manager at Workiva:

It's been live on our workforce: new templates, a new way of adding new employees; we've built an attrition model to  streamline some things, and a new hire model. So having that accuracy has been pretty awesome.

Underrated news - Planful releases its financial planning maturity model

Another underrated news story? Maturity models! Yes, for those who chase metaverses and blockchains, maturity models are about as sexy as A/B testing, but if you're interested in project success, maturity models are a factor. A couple years ago, I tormented software vendors with Attention vendors - please stop the customer success hype train, unless you have these six proof points . I picked six difficult customer success milestones most vendors can't stomach. Number five is: Where is your publicly-shared benefits maturity model? As I wrote: 

Most of the advanced benefits of SaaS software are not achieved at go-live; they require a concerted effort by customers, vendors and partners to achieve. I sometimes call this a "fierce act of will" - it does not just happen.

Well, Planful checked off that box, with their Perform 24 announcement of their own maturity model. Planful's maturity model is framed around automation -> collaboration -> innovation. But of course, you can be mature in one area, and not-so-mature in another. So their model has specifics across functions. Here is a broad sample from the keynote: 

Against this type of model, every customer will have areas to improve. Planful can improve upon this also; ultimately, I believe these maturity models need to be baked into software, and perhaps accessed by a conversational AI that points towards areas of process improvement against peer benchmarks. Snark alert: that should keep "customer success" teams busy for a while! 

But I was struck by Halloran's keynote comment that if customers get stuck, it's around collaboration. During our analyst Q/A with the Planful leadership team, I asked him about that: " Where do customers fall down in collaboration, and what do they need to do differently? " Halloran explained: 

It's a mindset problem... Some are more advanced. Newer companies that are still scaling, they can establish that culture early on. So what we do is we encourage people to really think of themselves as stewards. You're a custodian or a steward of a process in your company. Financial Performance Management is a universal capability that we need to create across your whole company - all corners of the company need to be doing it.

I asked Simms a similar question. She says that when customers struggle, there is often a culture issue around data ownership. Every customer is different, but: 

Some want to hold data to themselves, and they don't want to bring in people from the outside. Others are: 'Yes, I can be more efficient.' And you just have to figure out: where is this customer coming from? What's their mindset in terms of letting go of control, if you will, a little bit. Jim [from Chosen Foods] is on the other side, very excited and open to getting scale by bringing his counterparts in, which I think is great.

Halloran says the challenge for Planful is showing what's possible on that other side. That became a big goal of the Perform 2024 keynote, which will be available for virtual replay shortly. Halloran believes the lightbulbs go off when HR leaders can drill into workforce compensation lines, and see monthly variants on a granular level. The same is true on the marketing side: 

Marketing controls so much money, and the returns on that money is super important. It's just another version of financial performance. 

With 40% of Planful's customers at the enterprise level, these numbers add up - as do the potential savings. But on the downside, as companies get more complex, the resistance to change gets more complex also. But if some customers are struggling with collaborative finance, others are moving ahead. When I spoke with Matthew Zabinski, Production Manager at the Center For Internet Security, his story nailed my underrated themes of the show: granular planning and team collaboration. I asked him about the Chosen Foods example of granular planning with SKUs. Jokingly, Zabinski said that they could now track and plan on the level of pencils (in reality, they can drill into the project level, and are planning to go deeper). As he told me: 

What we're doing today, we never could have done in Excel from this level of granularity... But what it's also done for our organization, in my opinion, has been knocking down silos between departments. What I mean by that is: we're able to set organizational objectives and goals, and a lot of them are shared between multiple departments, and we're planning around it.  So the teams need to work together; they need to collaborate with each other to be successful. When we have a planning meeting, budget forecast, or variance analysis meeting, we're pulling in multiple team members from across the organization from different departments. And again, they're working together on that.

My take - AI in finance means matching accuracy to use case

There is more to say about Perform 2024 - in particular about AI. Overall, the customers I spoke with are still in the AI tire kicking phase. Planful AI demos showed how finance teams could ask questions to the AI, in context of their planning functions. I taped a podcast with diginomica contributor Brian Sommer that gets into Planful's AI approach in more depth; I'd add that link this weekend. I suspect Sommer's event review for diginomica will hit on that also, so stay tuned. 

Vendors are mostly saying the right things about AI. Therefore, we will be forced to assess them by the effectiveness of their adopted products. To that end, I did miss one customer session with a Planful Predict customer who was further along in their AI pursuits. I'll catch that on replay, but one area where Planful stood out from what I've seen this year is explainability. Most vendors are doing a half-assed job of paying lip service to AI explainability, mostly making excuses about how challenging it currently is. Planful's demo, on the other hand, showed good examples of how Planful AI discloses their finance answers (I'll add a sample slide of that to this piece shortly). Though Planful is mostly addressing explainability outside of external LLMs, which are notorious black boxes, I still liked what I saw. The rest is a story for another time. 

Halloran set the right keynote tone by acknowledging the hallucination tendencies of consumer LLMs won't fly in finance. And he points out that accuracy is a matter of AI use cases. A finance team might be pretty happy with 80 percent accuracy on predictive AI functions, but no less than perfect accuracy will be accepted for quarterly numbers etc. If Planful gears their AI delivery around those considerations, that will help them earn the trust needed for wider AI adoption. For now, the Perform announcement of a free month of Planful Predict should help customers assess those paid, add-on solutions more broadly, even while Planful's generative AI solutions previewed at Perform are not officially priced yet. 

In the days to come, I'll review the customer interviews and post another Perform roundup on how finance is changing, and where the obstacles to change lie.

Women need different financial plans – Here are 4 key steps to take

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Women face unique challenges that can often make securing their financial future seem daunting. However, with the right tools and approach, you can navigate these challenges and build a strong financial plan tailored to your individual needs.

In this article, we’ll discuss the financial obstacles women face, how to start a financial plan , key elements of a robust financial plan and tips for managing and improving your plan.

Unique financial challenges women face

Financial planning helps you make smart decisions about your money so that you can achieve your financial goals. The key elements of financial planning for women are not significantly different from those for men. All financial plans involve elements of saving, investing, insurance and estate planning — no matter your gender.

However, women often face unique financial challenges men do not, including the gender pay gap . They may also need to take time off work for caregiving duties, which can impact their retirement savings and the size of their Social Security benefit .

The persistent gender pay gap

The gender pay gap is a significant financial obstacle women face. In 2022, women earned an average of 82 percent of what men earned — and that gender pay gap has remained relatively steady in the U.S. over the last 20 years, according to research from the Pew Research Center.

This income disparity can drastically impact women’s ability to build wealth and achieve financial independence . It can lead to reduced contributions to retirement savings, lower Social Security benefits , and less money available for emergencies and other financial goals.

Why women need to plan for retirement differently

Women tend to live longer than men, which means they need to stretch their retirement savings over a longer period. And since women often have lower lifetime earnings due to the gender pay gap and periods of time off work for caregiving, they may contribute less to retirement , resulting in less compounding growth for their retirement funds.

Women are also more likely to invest conservatively, which can lead to lower overall net worth and missed opportunities for growth. Finally, societal expectations often dictate that women prioritize family needs over their own financial planning, which can leave them with less money in retirement.

How to start a financial plan as a woman

Before you start creating a financial plan, it’s crucial to understand your current financial situation, including your income, expenses, debts and savings. Next, you should set clear financial goals that align with your values and long-term plans. These might include paying off debt, saving for a home or building a retirement nest egg .

Establishing a financial identity is also important. It involves taking control of your money and making informed decisions that align with your financial goals. Here are some steps to get started:

• Understand Your Finances : Regularly review your accounts, track your spending habits and monitor your bank balances. This will help you understand where you stand financially and make informed decisions.
• Control Shared Finances : If you share finances with a partner , make sure you stay involved in financial decisions and maintain access to all shared accounts. Consider establishing monthly check-ins with your partner to discuss finances.
• Create an Emergency Fund : Aim to save at least three to six months’ worth of expenses in a separate account.
• Plan for the Future : This includes saving for retirement, planning for health care costs and considering life’s ‘what-if’s.’ Having a plan for the future can give you peace of mind and help you feel more secure. Planning for life changes such as career transitions or caregiving responsibilities can also help ensure financial stability.
• Build Credit : Establishing a strong credit history in your own name can help you qualify for better financing terms in the future. Making timely payments, maintaining low balances on credit cards and avoiding unnecessary debt can all have a positive impact on your credit score.

4 key elements of financial planning for women

Build an emergency fund.

Building an emergency fund is particularly important for women. Creating a financial safety net can act as a cushion when you face unexpected challenges like job loss, health emergencies or car repairs without the added stress.

An emergency fund can also lessen the financial impact of potentially devastating events like divorce or the death of a spouse, which women are statistically more likely to experience. Ideally, your emergency fund should cover at least three to six months’ worth of living expenses.

Pay off high-interest debt

Credit card debt, payday loans and other forms of high-interest debt can keep you in a cycle that’s hard to break. By focusing on paying off these debts first, you can save money on interest charges and free up more of your income to put toward savings and investing.

Strategies like the debt snowball or debt avalanche method can help you tackle high-interest debt in a structured way. The snowball method involves paying off your smallest debt first to gain momentum, while the avalanche method focuses on paying off the debt with the highest interest rate first to save money.

Insurance is essential

Insurance is a crucial part of any woman’s financial plan. It provides a safety net against unexpected events that could otherwise cause substantial hardship for you and your family.

Life insurance can replace income and help your family maintain their standard of living in case you pass away. For single moms, life insurance is critical as they shoulder all responsibilities for their children. If you’re relatively young and in good health, you can secure a term-life insurance policy at an affordable monthly cost.

Health insurance can help cover medical expenses, while disability insurance can provide income if you’re unable to work due to illness or injury. Finally, long-term care insurance can help cover the cost of care in a nursing home or assisted living facility, which women are more likely to need given their longer life expectancy.

Invest for the future

Not only can investing help grow your wealth over time, it can also provide a source of passive income and help protect against inflation. Women should consider making regular contributions to a 401(k) or IRA since these are among some of the best retirement accounts out there and come with special tax advantages. And if your job offers a 401(k) plan, you might benefit from a matching contribution from your employer, which is essentially free money.

It’s also important to understand the risk associated with different types of investments and to invest in a way that aligns with your risk tolerance and financial goals. Working with a financial advisor can be beneficial in creating an investment strategy that works for you.

How to manage and improve your financial plan

Managing and adjusting your financial plan is an ongoing process that requires regular review.

Start by monitoring your finances regularly to understand your spending habits and track progress toward your goals. Automating your savings can help you avoid the temptation to skip or decrease contributions. Regularly reassess your financial goals and adjust your plan as needed to reflect changes in your life and financial situation.

Additionally, taking steps to increase your income, such as negotiating for higher pay or taking on a side job, can also help improve your financial plan. Don’t be afraid to seek professional advice if you need help managing your financial plan.

Tips for overcoming financial challenges for women

Women might face unique financial challenges, but they’re not impossible to overcome. Here are some tips to help women navigate these hurdles:

• Seek Financial Education : Knowledge is power. By learning about personal finance, investing and retirement planning, you can make informed decisions that align with your financial goals.
• Plan for Longevity : Women typically live longer than men, so it’s important to plan for a longer retirement. This might involve saving more, investing for growth and considering insurance products like long-term care insurance.
• Take Control of Your Finances : Whether you’re single or in a relationship, it’s important to take an active role in managing your money. This includes understanding your income and expenses, making a budget and maintaining your own financial autonomy.
• Negotiate : Don’t be afraid to negotiate your salary and benefits at work. Women often face a gender pay gap, but negotiating can help close this gap and boost your earning potential.
• Invest in Yourself : This can include furthering your education, starting a business or investing in your health and well-being. Remember, you are your most important asset.

Bottom line

Despite the unique financial challenges women face, effective financial planning can empower you to navigate these obstacles and secure your financial future. By setting clear goals, building an emergency fund, paying off high-interest debt, securing insurance and investing for the future, women can take charge of their financial well-being. Remember, it’s never too early or too late to start planning for your financial future.

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Support for legal abortion is widespread in many places, especially in Europe

Majorities in most of the 27 places around the world that Pew Research Center surveyed in 2023 and 2024 say abortion should be legal in all or most cases. But attitudes differ widely – even within places. Religiously unaffiliated adults, people on the ideological left and women are more likely to support legal abortion in many places.

This analysis focuses on public opinion of abortion in 27 places in North America, Europe, the Middle East, the Asia-Pacific, sub-Saharan Africa and Latin America.

This analysis draws on nationally representative surveys of 27,285 adults conducted from Feb. 20 to May 22, 2023. All surveys were conducted over the phone with adults in Canada, France, Germany, Greece, Italy, Japan, the Netherlands, South Korea, Spain, Sweden and the United Kingdom. Surveys were conducted face-to-face in Argentina, Brazil, Hungary, India, Indonesia, Israel, Kenya, Mexico, Nigeria, Poland and South Africa. In Australia, we used a mixed-mode probability-based online panel.

Data from Hong Kong, Taiwan and Vietnam comes from a survey of 6,544 adults conducted from June 6 to Sept. 17, 2023. All interviews in Hong Kong and Taiwan were conducted over the phone; those in Vietnam were conducted face-to-face.

In the United States, data comes from a survey of 8,709 U.S. adults conducted from April 8 to 14, 2024. Everyone who took part in this survey is a member of Pew Research Center’s American Trends Panel (ATP), an online survey panel that is recruited through national, random sampling of residential addresses. This way nearly all U.S. adults have a chance of selection. The survey is weighted to be representative of the U.S. adult population by gender, race, ethnicity, partisan affiliation, education and other categories. Read more about the ATP’s methodology .

Here are the questions used for this analysis , along with responses, and the survey methodology .

A median of 66% of adults across the 27 places surveyed believe abortion should be legal in all or most cases, while a median of 30% believe it should be illegal in all or most cases.

In the United States, where a Supreme Court decision ended the constitutional right to abortion in 2022, 63% of adults say abortion should be legal in all or most cases. U.S. support for legal abortion has not changed in recent years.

In Europe, there is widespread agreement that abortion should be legal. In nearly every European country surveyed, at least 75% of adults hold this view, including roughly 25% or more who say it should be legal in all cases.

Swedes are especially supportive: 95% say it should be legal, including 66% who say it should be legal in all cases.

Poland stands out among the European countries surveyed for its residents’ more restrictive views, at least compared with other Europeans. Over half of Poles (56%) say abortion should be legal in all or most cases, but 36% say it should be illegal in all or most cases.

Attitudes are more varied in the Asia-Pacific region. Majorities say abortion should be legal in all or most cases in Australia, Hong Kong, India, Japan, South Korea and Taiwan. But in Vietnam, a majority (59%) say it should be illegal in all or most cases, and 82% in Indonesia share this view.

In Israel, 51% of adults say abortion should be legal in all or most cases, while 42% say it should be illegal in all or most cases.

In all three African countries surveyed – Kenya, Nigeria and South Africa – majorities say abortion should be illegal in all or most cases. That includes 88% of adults in Kenya and 91% in Nigeria.

In South America, views about legal abortion are divided in Argentina and Mexico. But in Brazil, seven-in-ten adults say abortion should be illegal in all or most cases.

Abortion legislation and views of abortion

Abortion rules tend to be more restrictive in places where support for legal abortion is lower. Abortions in Brazil, Indonesia and Nigeria are only permitted when a woman’s life is at risk, according to the Center for Reproductive Rights . In Israel, Kenya and Poland, abortion is permitted to preserve a woman’s health. Most other places surveyed have more permissive regulations that allow abortions up to a specific point during the pregnancy.  

Compared with Pew Research Center surveys over the past decade in Europe , India and Latin America , more people in many countries now say that abortion should be legal in all or most cases.

Importance of religion and attitudes toward abortion

Attitudes toward abortion are strongly tied to how important people say religion is in their lives. In places where a greater share of people say religion is at least somewhat important to them, much smaller shares think abortion should be legal.

For example, 99% of Nigerians say religion is important in their lives and only 8% say abortion should be legal in all or most cases. On the opposite end of the spectrum, 20% of Swedes see religion as important and 95% support legal abortion.

People in India are outliers: 94% view religion as important, but 59% also favor legal abortion.

How religious affiliation, GDP relate to abortion views

Economic development plays a role in this relationship, too. In places with lower gross domestic product (GDP) per capita , people tend to be more religious and have more restrictive attitudes about abortion.

But the U.S. stands apart in this regard: Among the advanced economies surveyed, Americans have the highest per capita GDP but are among the most likely to say religion is important to them. They are also among the least likely to say abortion should be legal in all or most cases.

Religious affiliation is also an important factor when considering views of abortion in particular places.

On balance, adults who are religiously unaffiliated – self-identifying as atheist, agnostic or “nothing in particular” – are more likely to say abortion should be legal in all or most cases than are those who identify with a religion.

This difference is largest in the U.S., where 86% of religiously unaffiliated adults say abortion should be legal in all or most cases, compared with 53% of religiously affiliated Americans. Of course, differences also exist among religiously affiliated Americans. White evangelical Protestants are the least likely to favor legal abortion.

In countries where there are two dominant religions and negligible shares of religiously unaffiliated adults, there are often divides between the dominant religions.

Take Israel, for example, where 99% of adults affiliate with a religion. While 56% of Jewish adults say abortion should be legal in all or most cases, 23% of Muslims agree. And 89% of Jews who describe themselves as Hiloni (“secular”) favor legal abortion, compared with only 12% of Haredi (“ultra-orthodox”) or Dati (“religious”) Jews. Masorti (“traditional”) Jews fall in between, with 58% favoring legal abortion.

Views differ by religion in Nigeria, too, even as the vast majority of Nigerians oppose legal abortion. One-in-ten Nigerian Christians support legal abortion in all or most cases, compared with just 3% of Nigerian Muslims.

Differences in views by political ideology

In 15 of the 18 countries where the Center measures political ideology on a left-right scale, those on the left are more likely than those on the right to say abortion should be legal in all or most cases.

Again, Americans are the most divided in their views: 94% of liberals support legal abortion, compared with 30% of conservatives.

Opinions by gender

Gender also plays a role in views of abortion, though these differences are not as large or widespread as ideological and religious differences.

In seven countries surveyed – Australia, Israel, Japan, South Korea, Sweden, the UK and the U.S. – women are significantly more likely than men to say abortion should be legal in all or most cases.

In an additional six countries in Europe and North America, women are more likely than men to say abortion should be legal in all cases.

In Hong Kong, Hungary, India, Indonesia, Poland, Taiwan, Vietnam and all the African and Latin American countries surveyed, men and women have more similar views on abortion.

Note: Here are the questions used for this analysis , along with responses, and the survey methodology . This is an update of a post originally published June 20, 2023.  

• Household Structure & Family Roles
• International Issues
• Religion & Abortion

Janell Fetterolf is a senior researcher focusing on global attitudes at Pew Research Center .

Laura Clancy is a research analyst focusing on global attitudes research at Pew Research Center .

Americans overwhelmingly say access to IVF is a good thing

Among parents with young adult children, some dads feel less connected to their kids than moms do, most east asian adults say men and women should share financial and caregiving duties, parents, young adult children and the transition to adulthood, public has mixed views on the modern american family, most popular.

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