project-1

our main objective

Our main objective was ensuring successful retirement.

our main question

Our main question was: How do different circumstances affect the success of Americans' retirements? By answering our main question, we hoped to gain insight on improving retirement.

jessica v.'s analysis

question #1: which age group saves the most for retirement?

This stacked bar chart shows the reasons for which individuals save against retirement across various age groups.

The age group 55-64 is the most active in saving for retirement and future liquidity. This likely reflects the proximity to retirement age, leading individuals in this group to prioritize retirement savings and financial security. Younger age groups (<35) are more likely to save for a home, while those in middle and older age groups focus on liquidity and retirement. While the ability to save is generally consistent across most age groups, younger individuals (under 35) face more significant challenges in this area. This could be attributed to factors such as lower income levels, higher student loan debt, or other financial pressures that disproportionately affect younger adults.

question #2: how does total income vary by reason for saving and spending patterns?

This bar chart compares total income versus reasons for saving and spending patterns.

It shows how average income correlates with different reasons for saving, as well as how spending relates to income in these cases. Spending less than income dominates most categories, particularly for those saving for liquidity/future and saving for a home, indicating that individuals in these groups are effectively managing their finances. Individuals saving for liquidity/future tend to have much higher incomes, which may give them more flexibility to save. There is a small subset of individuals across categories whose spending exceeded income, suggesting financial strain or overspending behaviors, but these cases are relatively few compared to those managing to spend less than they earn.

question #3: how do reasons for saving vary across different education levels?

This bar chart explores how different education levels correlate with reasons for saving.

Higher education correlates with financial preparedness: Individuals with a Bachelor's degree or higher are more likely to save for retirement and liquidity needs, and fewer of them report being unable to save. Lack of planning is common among less educated groups: Those with no high school education have higher rates of no listed savings reasons and more individuals unable to save. This suggests that lower education levels may be associated with financial challenges. Liquidity and retirement dominate: Across most education levels, saving for liquidity and retirement are the primary reasons for saving, highlighting their importance in financial planning. Home and investment savings are relatively low across all education groups, suggesting that these may not be primary concerns for most people in comparison to future financial security.

agustín r.'s analysis

question #4: how do student loan payments affect retirement savings?

This scatter plot shows the anomalies between the total retirement assets, monthly student loan payments and age group.

Younger Age Groups: Face a strong negative relationship between student loan payments and retirement assets due to the financial strain of early career stages and high debt levels. This underscores the need for targeted financial planning and debt management strategies Middle Age Groups (40-60): Exhibit a flattening trend as student loans are reduced and retirement savings increase, reflecting a shift toward improved financial stability. This phase is critical for enhancing retirement contributions and ensuring long-term financial health. Older Age Groups (60-90): Generally show lower student loan payments and higher retirement assets, but some outliers with high student loan payments suggest ongoing financial responsibilities, such as supporting family members. This highlights the complexity of retirement planning when faced with extended financial obligations.

question #5: how does occupation type affect retirement savings?

The line graph shows a big difference through (Age Group) based on the average quasi-liquid retirement assets and average retirement assets by occupation category

Among all age groups, those in the managerial/professional occupation category have more in their retirement assets. The Trends between the technical/sales/services and other occupation categories are relatively similar. The amount in retirement assets for those who are in the "not working" occupation category increases with age because older ages in this category are probably retirees. There is a decrease in their retirement assets after the 65-74 age group because these age groups are probably retirees spending what is saved in their retirement.

question #6: how does home ownership affect total retirement savings?

The pie chart reveals that total retirement assets for individuals with home equity are significantly higher compared to those without.

The higher total retirement assets among individuals with home equity can be linked to various financial behaviors and demographic factors. Homeownership often contributes to financial stability, which can enhance retirement savings. However, it's also crucial to account for other factors and individual circumstances that might influence retirement asset accumulation. The higher percentage of total retirement assets for individuals with home equity is largely due to the financial stability, disciplined savings behavior, and increased wealth accumulation associated with homeownership. These factors create a favorable environment for building retirement assets, contrasting with the financial challenges often faced by renters. The higher total retirement assets observed for individuals with home equity can be attributed to different financial behaviors, and potentially advantageous demographic factors. Understanding these factors can provide insight into the broader financial landscape and the role of homeownership in retirement planning.

hana w.'s conclusion and food for thought

There are many implications to our findings, above.

First, the concentration of dots in the left corner of the scatter plot for question #4 suggests that monthly student loan payments are a great hinderance to saving for retirement.

Second, there is some sort of relationship between owning a home and having assets for retirement in the pie chart for question #6. It is not causation, but perhaps it is correlation through a third variable. Age, perhaps? What supports our guess is the stacked bar chart for question #1, where it shows that younger ages are more intent on saving for homes while older ages can focus on saving for retirement, liquidity, and the future.

Third, the occupational category for managerials and professionals merits more investigation. Why is it that they are so successful at saving for retirement? Perhaps the Survey of Consumer Finances should gather more data on that front, next time.

Finally, the remaining visualizations for question #2 and question #3 imply that (1) people saving for homes, retirement, liquidity, and the future and (2) people with higher education have better habits to manage and prepare their finances. Why is that? That merits investigation, too, and exploring that may reveal reasons why certain Americans experience more successful retirements.