Recent studies have demonstrated that individuals' financial planning horizons significantly impact their economic decisions, such as saving propensities, credit card usage behaviors, investment choices, retirement decisions as well as estate planning engagements. Motivated by the profound implications and impacts of people's financial planning horizon variations, this paper investigates the determinants of individuals' financial planning horizons both cross-sectionally and longitudinally. Using the Health and Retirement Study data, the analyses in this paper reveal that American adults' financial planning horizons are strongly determined by their self-perceived life expectancy. Over time, the changes in self-perceived life expectancy, marital and retirement status, health conditions and wealth level will cause individuals shift their financial planning horizons. The insight gained in this study helps financial planners to better understand the factors driving the changes of their clients' financial planning horizons and how to encourage them to expand their planning horizon.
