An integrated model on purchase intentions of typical and tax-deductible saving products: The roles of retirement goal clarity and age

Abstract

Previous research on retirement planning largely focuses on the general tendency to save for retirement. By integrating two theoretical models, namely, interdisciplinary psycho-motivation model and the theory of reasoned action, the present study aims to advance the previous work to examine the effects of social (social norms and social support) and psychological (future time perspective and financial literacy) factors on behavioral intentions for purchasing specific financial products for retirement. Cross-sectional data were obtained from 598 Hong Kong Chinese working adults of a wide age range. Mediation analysis showed that retirement goal clarity could partly account for the effects of financial literacy, social norms, and social support on the purchase intentions of both annuity and other saving products in the commercial market. Additional moderated mediation analyses revealed a stronger mediating effect of retirement goal clarity on the relationship between social norms and annuity products in younger workers than that in older workers. Findings of this study provide valuable insights into the roles of retirement goal clarity and age in the purchase intentions of financial products for retirement. The examination of the newly launched tax-deductible products in younger and older workers further discloses these products are relatively more attractive to younger individuals as a means of financial retirement planning.