Scale name: Financial Risk Tolerance  

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Description: This instrument taps individuals’ attitudes toward risk, specifically, as applied to financial investing for retirement. 

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Source: Jacobs-Lawson, J. M., & Hershey, D. A. (2005).  Influence of future time perspective, financial knowledge, and financial risk tolerance on retirement savings behaviors.  Financial Services Review, 14, 331-344.

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Cronbach's alpha: 0.83

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Response format: Likert-type response format (1 = strongly disagree; 7 = strongly agree)

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Instructions: Using the seven-point scale below, please indicate the extent to which you agree or disagree with each of the following statements. 

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Items:

1. I am willing to risk financial losses.                                                                          
2. I prefer investments that have higher returns even though they are riskier.
3. The overall growth potential of a retirement investment is more important than the            level of risk of the investment.                                                                                     

4. I am very willing to make risky investments to ensure financial stability in retirement.

5. As a rule, I would never choose the safest investment when planning for retirement.