Financial Retirement Planning Research Articles

Evaluating Institutional Supports for Financial Retirement Planning: Evidence from the Ghanaian Informal Sector

Evaluating Institutional Supports for Financial Retirement Planning: Evidence from the Ghanaian Informal Sector

The Influence of Age and Income on Financial Planning: A Case Study on its Impact on Retirement Planning Decision

Retirement refers to a stage in life when an individual stops working and transitions into a life of leisure and relaxationwhere involvement in activities decreases and becomes more limited. Even after a person reaches retirement age, a good retirement life needs continued job and a source of regular income. Retirement planning includes financial planning and preparation to ensure a comfortable standard of living after the cessation of employment. Inadequate retirement planning will typically result in some dissatisfaction during retirement. Therefore, it is crucial to have a good retirement plan. The reasonto conduct this study is to examine the significance of demographic variables and its impact while preparing for retirementin India amongst young employees. The objectivehere is determining the importanceofvariables including age and incomewith regard to financial planning for retirement. The study is conducted in Indian context. Age and income are the demographic factors on which the study is conducted. The conclusions of this research will aidpeople of India in creating a sound retirement plan for their future.

Relevance of Employee Saving Attitude Towards Retirement Planning and Satisfaction

Purpose: To study the relevance of employee saving attitude towards retirement planning and satisfaction. Theoretical framework: The study discusses various variables associated with financial planning for retirement. It discusses the connection between financial knowledge among the people especially with retirement. It put forth the consequences and importance of financial literacy. It also examined the factors playing a vital role when the people are educated on financial planning. Design/methodology/approach: The survey approach is used for primary data collection from 200 hundred respondent. The raw data was arranged in excel then analysed through “SPSS version 26”. Findings: From the results, it is observed that the association between planning and literacy is significant and important consequences of being financially aware and indulging in planning. Teaching about several resources like workshop, seminar, correspondence etc. help significantly to employees about saving for retirement. Thus, financial literacy plays a significant role in post-retirement planning of employees. Research, Practical & Social implications: The research may provide some insight on the relationship between attitude toward superannuation planning and the function of financial literacy. It is critical for all working people to start thinking about retirement planning early in life. Originality/value: This article is an academic contribution that allows an understanding about the relevance of employee saving attitude towards retirement planning and satisfaction among highly educated workers in Pune's industrial district, Maharashtra.

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

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.

The Effects of Financial Attitudes, Financial Literacy and Health Literacy on Sustainable Financial Retirement Planning: The Moderating Role of the Financial Advisor

Financial planning for retirement is essential to ensure that people have enough money to live the lifestyle they desire when they retire. Self-employed business owners in developed countries widely do financial retirement planning. However, in Malaysia, the percentage of self-employed individuals concerned about financial retirement planning is lower than in other countries. This study aims to identify the relationship between the financial attitude, financial literacy and health literacy of self-employed individuals toward sustainable financial retirement planning in Malaysia and find out the moderating effect of the role of financial advisors. The study utilized structural equation modelling. Data were collected through a survey questionnaire and analyzed using SMART PLS 3.3. The total sample size was 416 self-employed individuals from the northern Malaysian region. The findings revealed that financial attitude and financial literacy significantly impact retirement planning. Moreover, the role of financial advisors moderates the relationship between financial attitude–financial retirement planning and financial literacy–financial retirement planning. The result of the study will fulfil the needs of self-employed individuals to plan their retirement by including the financial planning determinants needed for a well-planned retirement.

The Sustainable Retirement Planning and Management: A Case Study of Chetsamian Community, Photaram District, Rachaburi Province

Sufficient and sustainable well-being of Thai citizens has been the main government’s objective for national development whether it is about the good health of the people or the country's economy. The main goal of the government is to assure that everyone can live happily, without torment, no matter which state in life they are - working or retired, everyone has to be able to live comfortably. Despite the government's policy to support the elderly, in reality of the welfare of the state for the elderly seems to be inadequate. At present, it can be seen that the elderly population is increasing, but they are still unable to sustain themselves. There is also a problem that most of the working-aged people still lack in knowledge for effective preparation for retirement. The objectives of this study were: 1) to study the attitude and behavior of aging people by analyzing the data from working age people; 2) to develop the planning and management approach in order to sustain the living in retirement age; and 3) to study the problems before and after retirement by analyzing the data from working age people from 25 to 59 years old. Quantitative method was used in this study. The results showed that working-aged people should plan for the retirement in order to live financial sustainably. The government can encourage people from every sectors to learn about financial planning for retirement together in order to promote health and well-being of the retirement.

Preparação financeira para aposentadoria: análise multidimensional da percepção dos brasileiros

ABSTRACT This article aims to assess the perception of financial preparation for retirement in the non-retired Brazilian population. Also, it seeks to identify how socioeconomic, demographic, and behavioral variables influence financial preparation for retirement. This study advances by using a multidimensional measure of financial preparation for retirement in a comprehensive sample of Brazilians, bringing significant contributions to the implementation of new public policies for the most vulnerable groups. Identifying the level of financial preparation for retirement and the most vulnerable groups is key for a better understanding of the impact of social security and retirement on the lives of Brazilian citizens. In the Brazilian context, the Financial Preparation for Retirement Scale (FPRS) makes it possible to assess the public policies designed and it serves as a parameter for them to be reformulated, with a view to improving financial preparation for retirement in the most vulnerable groups. This is a survey, with 2,920 respondents from all Brazilian regions. The analysis techniques consisted in descriptive statistics, association test, and multiple regression analysis. Most Brazilians show low or very low financial preparation for retirement. It has been identified that 3 out of 4 Brazilians stop to think about how much they would need to save for their retirement. Despite being able to carry out some financial planning for retirement, most Brazilians cannot have good future expectations and savings behavior. Women, young people, divorced/separated persons, black persons, individuals with up to complete elementary education, borrowed housing, unemployed, with a gross monthly family income of up to R$ 1,100.00 and having 4 or more dependent persons constitute the profile of citizens less capable of dealing with financial preparation for retirement.

Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy

The purpose of this paper is to explore the impact of financial literacy on financial well-being among the business school faculties. Both the variables (financial literacy and financial well-being) are operationalized as multi-dimensional constructs to undertake the study. Moreover, the paper also endeavored to examine the mediating role of financial self-efficacy between financial literacy and financial well-being. The paper adopts a survey by questionnaire method to gather data from 203 business school faculty members through the simple random sampling (SRS) technique. Confirmatory factor analysis was used for scale validation, and structural equation modeling was used for hypotheses testing. Mediation was tested using percentile bootstrap with a 95% confidence interval. The study found a significantly positive impact of financial literacy as well as its dimensions on financial self-efficacy and financial well-being. It was also found that financial self-efficacy partially mediates the effect of financial literacy on financial well-being. Measurement of the constructs was done on subjective measures, and the study is limited to business school faculties only. The present research findings could be employed in crafting educational programs for business schools. These programs shall guide such institutions in imparting the knowledge and skills among students regarding their personal finances in terms of savings and retirement planning. The study was focused on the business school faculties of the Jammu and Kashmir region, who are less exposed to the financial literacy programs due to factors like frequent lockdown and internet shutdowns. Moreover, it is generally witnessed that salaried class people in Jammu and Kashmir pay less attention to long-term financial planning for retirement, which makes the present study more relevant. Therefore, this study will prove beneficial to all the employees, especially the business school faculties, to understand the importance of financial literacy and its subsequent effect on financial well-being.

Financial Planning for Retirement Models: An Integrative Systematic Review

Hundreds of financial planning literature reviews exist; only a few papers discuss the context of retirement. This paper aims to give researchers clarity and confidence on financial planning for retirement (FPR) by incorporating diverse perspectives, including theories, methodologies, and determinants of FPR. Given the importance of conceptual models to test hypotheses and predict information in a scientific study, the literature illustrated a dearth of model adoptions in examining the determinants that shape individuals’ perceptions of FPR behaviours. This paper highlights the pertinent gaps in the literature regarding the significant outcomes of empirical and theoretical contributions that relate to cognitive, psychological, and external variables influencing FPR. This review consists of two steps. The first step contains database searches, whereas the second step retrieves and screens all pertinent articles extensively covered over nearly 20 years between 2000–2019. In addition, this paper provides researchers with primary key features in prior publications, such as publication trends in years and countries, sample types, and statistical techniques employed.

Financial Planning for Retirement: The Mediating Role of Culture

The life expectancy rate of individuals worldwide has risen, and Saudi Arabia is not excluded. Rising long-life expectancy may jeopardize employees’ pensions and reduce the chances of adequate earnings and a decent life after retirement. Moreover, the number of employees, who have paid into pension funds and are now retired, has increased, indicating that pension funds are expected to decrease. Apart from the above, the level of financial literacy in Saudi Arabia was substandard. Therefore, the ultimate objective of this research is to examine the measurable factors that could impact employees in their financial planning for retirement (FPR). These factors comprise the employee’s financial literacy (FL), financial risk tolerance (FRT), and cultural factors based on the CWO model. Moreover, this study aims to investigate the mediating roles of culture in their relationship with financial planning for retirement. Primary data was collected during the COVID-19 pandemic from mid-July 2020 until the end of January 2021 using a non-probability convenience sampling approach involving 525 participants. The Structural Equation Modelling (SEM) technique was used to analyze the data. To determine the type of study variables, either a formative or reflective model of Confirmatory Tetrad Analysis (CTA-PLS) was used. The results show the significant influence of basic FL, FRT, and culture on FPR. Moreover, it shows the critical role of culture among those with advanced FL and FRT. Previous studies have examined FL and FRT in FPR without considering the effect of culture as a mediator.

Gender Bias in Financial Planning for Retirement

<p>Socio-economic factor, family structure has impact on the various facets of economy as well as individual’s life, specifically after retirement. In the past, primarily India had joint family structure or a compound family structure, which was a great source of support after retirement. Today India’s population is growing but average family size is reducing. This phenomenon translates into more retired people per working individual. If pretired individuals are financially secure, their hardships of old age can be reduced to a large extent. Per capita income today, is far greater as compared to past with many more investment avenues to suit ones requirement. Financial plan is required to satisfy financial needs at various stages of life. Income after retirement is consequence of the investments made during work life, which is the result of the financial plan for retirement. The census data indicates life expectancy for women is higher than men. Hence, it is important that women make financial planning for their financial needs after retirement. Financial literacy, savings and clarity of objectives are positively related to financial planning by the individuals. The data for the study is collected using Google Forms from the individuals employed in ITES sector in the city of Bengaluru. Logistic regression model is used to evaluate variance in the financial planning for retirement due to explanatory factors, ‘clarity of financial goal’, ‘attitude towards savings’ and ‘financial literacy’ on ‘financial planning for retirement. Independent t test is used to evaluate difference between men and women. The study revealed that explanatory variables had influence on the financial planning for retirement and t test revealed that men and women do not differ in their behavior.</p>

AN INVESTIGATION OF FINANCIAL ATTITUDES AND SUBJECTIVE NORMS INFLUENCING RETIREMENT PLANNING

Retirement counselors, financial planning specialists, and financial advisors often point out that attitudes and subjective norms are two highly important factors for saving intentions and retirement planning. The objective of this research is to investigate the effects of attitudes and subjective norms on saving plan intentions among the employees working in Thailand. This research has been conducted using the survey data on 400 employees (300 Thais and 100 foreigners) now working in Thailand. The key data analysis method has been Structural Equation Modeling (SEM) AMOS. The findings indicate that financial attitude has a positive effect on the saving plan intention, and subjective norms also have a positive effect on the saving plan intention. Therefore, employees should focus significantly on attitudes and subjective norms while creating their saving plans in the context of financial retirement planning. The study makes a scientific contribution in the form of s comprehensive model which is explaining investors’ behavior in part of financial planning for retirement.

Financial Planning for Retirement: Developing an Integrated Model

With higher life expectancy of the aging population, retirees nowadays will spend a prolonged period of time after retirement. Yet, past studies have consistently revealed a lack of retirement savings among working adults, implying an inadequacy to maintain the quality of life in late adulthood. This study therefore aims to identify the factors influencing the working adults’ intention to purchase financial products for retirement (such as deferred annuity and voluntary contribution to retirement fund) and develop an integrated model of financial planning for retirement. A total of 598 Hong Kong Chinese working adults from diverse age and income groups completed an online survey on intentions to save and purchase specific financial products for retirement. The results of MANCOVA reveal that compared to older workers, younger workers had lower intentions to save and purchase financial products for their retirement even after controlling for their monthly income [F(16,1797)=2.24, p=.003, partial n2=.015]. An integrated model of financial planning for retirement is proposed by incorporating the concepts of the interdisciplinary psycho-motivation model and Theory of Reasoned Actions (χ2 = 40.42, p<.001, CFI = .99, RMSEA = .07, SRMR = .02). In particular, the positive effects of financial literacy, subjective norms, social support, and future time perspective on intention to save and purchase financial products for retirement have been found to be mediated by retirement goal clarity but not attitudes towards retirement. Future direction on promoting younger and older workers’ retirement planning especially in the financial domain will also be discussed in the presentation.

Demographic Factors and Saving Behaviour: It’s Relevance in Financial Planning for Retirement

Life expectancy, in India, was 41 years in 1960, which stands 69.4 years in the year 2018, (World Bank, 2020). This improvement in the life expectancy is due to enhanced standard of living and improved healthcare system in India.&#x0D; India is a young nation with 28.34 years as a median age and more than 60 per cent of the population is in the working age group. Favourable saving and investment practices followed by this young population would lead to personal wealth creation and there would not be financial strain after retirement. RBI report on household finance revealed that 77 per cent of the population did not save for retirement. It is important to understand the saving and investment practices followed by this young population. The saving and investment practices are influenced by many demographic variables (May &amp; Sterne, 2018). Demographic variables such as age, gender, income, education, family size to name a few, influence the earning capability, amount available for saving, understanding of various financial products available for investment and making financial plan for life after retirement. The present study has probed into relevance of demographic factors in financial planning for retirement. The study has considered predictor variables, namely age, gender, education, profession, size of the family, total earning members in the family, frequency of saving and advice for saving. The study is conducted in the Quilon City, Kerala. For the study primary data is collected using structured questionnaire. Google form was the medium to collect the data. Binary logistic regression is used to analyse influence of afore mentioned variables on individual’s act to take decision to make financial plan for retirement. The study revealed that age, profession, number of earning members in the family, frequency of saving and advice for saving has significant impact on individual’s initiative to plan for retirement.&#x0D; Keywords: Financial Plan, Demography, Retirement

Planeación financiera para el retiro desde la perspectiva de jóvenes universitarios

Young people today will face greater challenges than their predecessors when it co-mes to financing their economic security in old age. The objective of this work is to establish the relationship, from the perspective of university students, between their expectations of financial planning for retirement and the attitudes and beliefs that promote it. The structural equations method was used to confirm the validity of the construct and the relationship between the variables. The study was developed with a sample of undergraduate students from the National Technological Institute of Mexico in Celaya. Self-perceived financial awareness, future outlook, and parental influence were found to significantly, directly, and positively impact financial expectations for retirement.

Expectativas de la planeación financiera para el retiro de padres de familia

La transición demográfica por la que está atravesando México le impondrá a esta nación grandes desafíos, ya que se proyecta que el número de adultos mayores aumentará significativamente en las próximas décadas. La seguridad económica de ese grupo etario es uno de esos desafíos que podría ser enfrentado a través de la planeación financiera que las personas hayan realizado en momentos oportunos a lo largo de su vida. Método: Esta investigación es cuantitativa, transversal y correlacional. Mediante cuatro modelos de regresión lineal múltiple se analizó la relación entre las expectativas de la planeación financiera para el retiro, el conocimiento financiero autopercibido para la etapa de retiro, claridad de las metas financieras en la etapa de retiro, la perspectiva del futuro y la influencia de los padres. Para ello se empleó el cuestionario diseñado por Koposko, Bojórquez, Pérez y Hershey el cual consta de cinco variables latentes medidas a través de 16 ítems con una escala Likert de siete puntos y que se validó anteriormente en el contexto en el que se realizó esta investigación. El cuestionario se aplicó a una muestra no probabilística de padres de familia de estudiantes universitarios de nuevo ingreso de los departamentos de Ingeniería Industrial y Ciencias Económico-Administrativas del Tecnológico Nacional de México en Celaya. Resultados: Las expectativas de la planeación financiera para el retiro dependen del conocimiento financiero autopercibido y este, a su vez, de la claridad de las metas financieras en la etapa de retiro. Por otro lado, la perspectiva del futuro determina la claridad de las metas financieras en la etapa de retiro. La influencia de los padres de los participantes de esta investigación, por su parte, impacta de forma positiva en la perspectiva del futuro. Discusión: Algunos de los hallazgos de esta investigación coinciden con la literatura existente, sin embargo, es necesario profundizar en el estudio de este modelo en diferentes contextos y con otros grupos etarios de manera que sea posible contribuir en el fomento de la planeación financiera para el retiro, considerando la influencia que en ese aspecto ejercen los padres y madres de familia ya que de esa manera se podría impulsar la seguridad económica en la vejez.

Employees’ Retirement Saving Behaviour During The Covid-19 Pandemic in Malaysia

Retirement planning has recently been prioritized by employees to safeguard a comfortable retired life. The objectives of the study were to assess whether income level, economic condition, saving behaviour and retirement goal clarity affect employees’ retirement saving behaviour during the COVID-19 pandemic in Malaysia. Life-cycle theories of savings and investing and theories of mental accounting are applied to determine the factors affecting employees’ retirement saving behaviour during the COVID-19 pandemic in Malaysia. Mix methods research design is conducted, where the quantitative survey is supplemented by a qualitative interview. The findings provide essential insights to governments in both developing and developed countries on the financial education for children starting young to ensure successful financial retirement planning during downturn and pandemic. This study shows that income level, economic condition, saving behaviour and retirement goal clarity are significant determinants of retirement saving behaviour, hence it has contributed to the conceptual model of retirement saving behaviour which enables individuals to plan their retirement well.

Financial planning for retirement of self-employed workers in the Ghanaian economy

PurposeThe purpose of this study was to ascertain the types of financial plan Ghanaian self-employed workers have towards their retirement, and the main forces that motivate these workers to financially plan for their pension.Design/methodology/approachThe study focused on self-employed workers aged from 15 to 60 years. Questionnaires were administered in gathering data for the study. The researcher used probit model in analysing the driving forces behind self-employed workers' financial planning for retirement.FindingsThe study revealed that bank/credit union/savings and loans savings, building of apartments for renting, investment in SSNIT pension, investment in treasury bills/fixed deposits, investment in ownership of business and private insurance pension are the types of financial plan that exist for self-employed workers towards their retirement. The study found that age, marital status, level of education, household size, number of children, renting a house, life style of the future retiree, income, risk level of job and types of retirement plan are the driving forces behind the retirement plans of self-employed workers.Practical implicationsUsing the identified types of financial plan and driving forces in this study, governments in the developing countries can develop and implement self-employed pension schemes, educate and encourage more self-employed workers to plan for their retirement.Originality/valueAnalysing the driving forces behind retirement plans of self-employed people in developing economies.

Financial Planning for Retirement: Bibliometric Analysis and Future Research Directions

This study aims to determine the status of existing research on financial planning for retirement. We used bibliometric analysis and content analysis to examine a sample of 1,116 studies conducted over a span of more than five decades. Bibliographic coupling network was developed to determine the intellectual themes in the field. Our findings suggest that the structural, economic, and cultural disparities worldwide lead to distinct pressures for savings on individuals. Further studies should be conducted considering emerging economies and the aforementioned disparities to gain deeper insights. While a few studies have examined the influence of social biases, behavioral biases, personality traits, and psychological constructs on financial literacy and the impact of this interaction on financial planning for retirement. We conclude by suggesting potential future research directions.

Retirement saving behavior: evidence from UAE

PurposeThis study aims to examine the effect of future time perspective (FTP), financial risk tolerance (FRT) and knowledge of financial planning for retirement (KFPR) on retirement saving behavior (RSB).Design/methodology/approachPrimary data were collected using a non-probability judgmental sampling technique. A questionnaire was distributed either manually (by hand) or through email where 370 United Arab Emirates (UAE) residents used in the higher education sector participated. The data analysis was obtained by using SPSS and Smart-PLS software. Structural equation modeling was used to evaluate the linear relationship between FTP, FRT, KFPR and RSB.FindingsThe findings from this study are consistent with previous research. FTP and KFPR had a significant positive effect, while FRT had an insignificant negative effect on RSB.Research limitations/implicationsThis study examined the effect of a few psychological variables on RSB and was conducted on a sample of university employees in the UAE. Additional research should examine environmental influences, individual differences and other psychological process factors. Furthermore, future research could extend the current study into other industries and other the Middle East and North Africa countries.Practical implicationsA better understanding of the factors that influence RSB can help working individuals, financial advisors/financial planning professionals, financial institutions and government/policymakers strengthen their understanding and initiatives toward retirement planning.Originality/valueTo the best of the authors knowledge, none of the previous research papers studied RSB in the UAE. Additionally, it is important to note that the results of this study can be generalized to all Gulf Cooperation Council countries because of the similar economic, political, ethical, social and cultural factors.