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2020 Conference

May 18–20, 2020

Proposal authors can use this tool to see where they have been placed in the agenda for a Symposium, an Oral Session, or a Featured Research Session Poster.

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F2b Overconfidence in Financial Knowledge and Hardship Withdrawals from Retirement Account

Thursday, May 21, 2020 at 2:45 PM–4:15 PM CDT
Room 2
Key Words

Retirement, Financial knowledge, Overconfidence, Early withdrawls, Hardship withdrawals, NFCS

Short Description

Hardship withdrawals from retirement accounts are a way to cover financial needs. However, overuse of hardship withdrawal could have detrimental impact on retirement asset accumulation. The IRS has recently announced a reduction in restrictions on hardship withdrawals starting January 2020, making them more attractive. Therefore, research on factors related to one's decision of hardship withdrawal is needed. The objective of this study is to examine hardship withdrawal, focusing on its relationship to financial knowledge. Logistic analysis was conducted to test how subjective and objective financial knowledge is related to hardship withdrawal decision. To further examine the impact of the financial knowledge, categorical variables were created based on the combination of two financial knowledge measures and tested.

First & Corresponding Author

Sunwoo Tessa Lee, The Ohio State University
Authors in the order to be printed

Sunwoo Tessa Lee, Sherman Hanna

Additional Authors

Sherman Hanna, The Ohio State University
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