Abstract
The present study analyzes the relationship between three distal antecedents—financial literacy, confidence in retirement, and economic well-being—and financial planning for retirement evaluated at two different times. We used longitudinal data with repeated measures of financial planning for retirement obtained from a sample (N = 269) of active Spanish workers aged 45–62 years. The results confirm that self-perceived financial knowledge, confidence in retirement, and economic well-being are associated with financial planning for retirement at three and six months. The stability of financial planning for retirement over time was a relevant finding in the present research, even though different measures have been employed in the two waves and financial planning decreases slightly at three months. While the first step of planning, at three months, has predictive power over the second, at six months, there are possible moderators in the relationship between financial planning for retirement at time 1 and time 2, which were not explored. The implications of the results both for financial education and Policy-makers are discussed. Future lines of research can explore these relationships including objective measures of income, as wealth accumulation.
Highlights
Financial planning for retirement is a complicated task for most people
We focused on self-perception of financial knowledge
The results show that confidence in retirement and economic well-being have a direct effect on FPR2 (b = .41, p = .001 and b = .15, p = .01, respectively), whereas financial literacy does not show a direct effect on FPR2 (b = .08, p = .1226)
Summary
Financial planning for retirement (hereinafter, FPR) is a complicated task for most people. The difficulty lies in the fact that FPR requires thinking about the future and saving based on the anticipation of the needs one will have during retirement [1]. At the same time, planning is a pressing task. Many people do not save for retirement, even when the reforms of the Public Pensions System during 2011 and 2013 led to a progressive reduction of the average pension value, which has been estimated as 30% less between 2010 and 2050, at least in Spain. Proper financial planning requires individuals to maintain a sustained effort over time to meet their future personal needs [3].
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
