Abstract
One problem for sustainability of systems pensions is how people without specialized financial training could manage their resources and their actual personal intentions towards retirement. Research objective is to analyse the relationship among several factors that affect the behaviour towards retirement, the financial management practices and the financial resources, by carrying out a structural equation model (SEM) that was tested in Spanish workers sample in three phases. The influence of financial literacy, financial retirement objectives, optimism on retirement, tolerance to financial risk, and the commitment to financial planning at time 1, are analysed as explanatory variables of financial management practices at time 2. Financial resources for retirement at time 3 are explained by financial management practices. According to results, the model can predict the 36% of the variance of financial management practices and 53% of the variance of financial resources for retirement. Thus, the model can be used for checking of knowledge of the personal financial behaviour before retirement, what enables a better personal financial planning. It would be possible to apply a model based on self-assessment in order to implement a complementary financial planning that would allow to maintain the welfare during retirement.
Highlights
Financial behaviour affects well-being and life satisfaction
The results of our work demonstrate that financial behaviour towards retirement is based on economic or educational factors, and on emotional factors linked to personal ability to plan towards period that precedes death (Major et al, 2016) and attitudinal personal factors (Hoffmann & Plotkina, 2020)
The most interesting findings of this study indicate that the application of a model that considers the capacity, willingness and opportunity for retirement planning, can be used to predict the financial resources available in retirement, from the perspective of selfknowledge of one’s personal intentions for retirement
Summary
Financial behaviour affects well-being and life satisfaction. The level of incomes has been considered as an important indicator (Glymour et al, 2014), due to it can causes financial difficulties (Kahn, 2018). Research on retirement should focus on helping citizens for the. Considering the prior literature, the objective of this work is to evaluate the joint influence of the three dimensions of Hershey et al (2013) – capacity, disposition and opportunity, through a structural equation model (SEM) aimed at analysing what variables of personal financial planning in Spain could be determining personal financial management, and its relationship with resources available for retirement. The structure for this article includes an introduction to the problem of retirement personal financial planning, the conceptual framework and literature, the model and method for the analysis, the results, the discussion, and the conclusions
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