Skip to main content
Kent Academic Repository

An Investigation on Early Voluntary Withdrawals from Individual Retirement Accounts: An Empirical Study on an Emerging Market

Yildiz, Y., Karan, M.B., Bayrak Salantur, S. (2017) An Investigation on Early Voluntary Withdrawals from Individual Retirement Accounts: An Empirical Study on an Emerging Market. Geneva Papers on Risk and Insurance: Issues and Practice, 42 (4). pp. 732-756. ISSN 1018-5895. (doi:10.1057/s41288-016-0037-9) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:100063)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL:
https://dx.doi.org/10.1057/s41288-016-0037-9

Abstract

Early withdrawals from individual retirement accounts are one of the main problems of pension companies in both developed and emerging countries. The aim of this study is to identify the potential reasons behind decisions to withdraw early from the individual retirement system in Turkey. Using Cox proportional hazards model, we find that there is a significant negative relationship between financial literacy and withdrawal probability. Our results reveal that men and younger individuals are more likely to make an early withdrawal. We also find that individuals who experience liquidity constraints and income shocks tend to withdraw their contracts earlier. Further analysis suggests that the effect of variables remarkably changes among different subgroups. We believe that our findings will assist both pension managers and policymakers to design better retirement plans and to take steps to prevent voluntary withdrawals in the long term. © 2017 The International Association for the Study of Insurance Economics.

Item Type: Article
DOI/Identification number: 10.1057/s41288-016-0037-9
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Funders: Hacettepe University (https://ror.org/04kwvgz42)
Depositing User: Yilmaz Yildiz
Date Deposited: 17 Feb 2023 12:43 UTC
Last Modified: 20 Feb 2023 15:31 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/100063 (The current URI for this page, for reference purposes)

University of Kent Author Information

  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.