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Article
Publication date: 29 April 2021

Osvaldo García Mata

The purpose of this paper is to analyze financial literacy's effect on retirement planning among young adults in Mexico, with gender as a moderator variable. Planning

1080

Abstract

Purpose

The purpose of this paper is to analyze financial literacy's effect on retirement planning among young adults in Mexico, with gender as a moderator variable. Planning refers to the actual or intended implementation of several retirement strategies: private pension funds, investing in assets, government subsidies and family assistance.

Design/methodology/approach

The article's methodology is quantitative, empirical and cross-sectional. Ajzen's theory of planned behavior (1991) works as the theoretical framework to examine planning for retirement intentions determined by individuals' financial inclusion, attitudes, knowledge, behavior, occupation and family traits. The methodology follows generalized structural equation models (GSEM) with logistic regression basis, constructed with data from the National Survey on Financial Inclusion 2018.

Findings

Results confirm that the most financially knowledgeable individuals have lesser intentions to pursue passive strategies, while financial behavior and inclusion associate with actively planning. Gender plays a fundamental role in retirement planning too.

Research limitations/implications

Observations for several years are necessary to effectuate longitudinal analysis. Further research should include a more in-depth study of strategy choice triggers and policy impact on retirement planning.

Social implications

Findings can be useful to public and private institutions focused on saving, investment and retirement, especially in economies comparable to Mexico's. Avoiding the higher social costs associated with poor retirement planning depends on timely decision-making.

Originality/value

This study goes beyond the traditional pension fund strategy to analyze other options. It delivers information about young people's long-term financial plans in Mexico concerning financial literacy and gender.

Details

International Journal of Bank Marketing, vol. 39 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 13 September 2018

Satish Kumar, Sweta Tomar and Deepak Verma

The purpose of this paper is to examine the status of the research on women’s financial planning for retirement. This paper provides a brief review of the work carried out…

2283

Abstract

Purpose

The purpose of this paper is to examine the status of the research on women’s financial planning for retirement. This paper provides a brief review of the work carried out so far along with a conceptual framework of factors influencing women’s retirement financial planning. In addition, it lists significant gaps and recommends avenues for future research.

Design/methodology/approach

The review is based on 151 articles appearing in various peer-reviewed journals published during 1980–2017. The study establishes its prominence by studying the publication activities based on the year of publication and region, citation analysis, research designs, data analysis techniques and findings from the selected articles.

Findings

Most of the literature on women’s financial planning for retirement indicates a lack of financial management amongst women and their susceptibility to poverty in postretirement years. The majority of the research works in this field have taken place in developed economies. Empirical research with regression-based models for analysis is the most popular research design. This review also highlights the significant determinants of women’s retirement financial planning as identified through literature. These include socio-demographic factors, psychological constructs, financial literacy, economic and circumstantial forces.

Originality/value

This paper covers the research works done in this area in the past 38 years. To the best of authors’ knowledge, this is the first attempt to provide a systematic and comprehensive compilation of the knowledge in this subject. It further synthesizes the findings of various studies on factors influencing women’s retirement financial planning and gives recommendations for future studies.

Details

International Journal of Bank Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 3 August 2020

Linda Evelina Larisa, Anastasia Njo and Serli Wijaya

The purpose of this study is to examine the effects of demographical factors (age, education and income); psychological factors which are future time perspective (FTP) and…

Abstract

Purpose

The purpose of this study is to examine the effects of demographical factors (age, education and income); psychological factors which are future time perspective (FTP) and financial risk tolerance (FRT); along with financial literacy on retirement planning among female workers in Indonesia.

Design/methodology/approach

This study applies a quantitative approach, where primary data was acquired through online surveys to 529 workers in various locations in Indonesia. After data cleaning, the final sample size was 304. The PLS-SEM technique was utilised to assess the structural model in the study.

Findings

The results of this study show that income affects an individual's perspective towards the future. Financial literacy is confirmed to have a direct effect on retirement planning activity. Furthermore, financial literacy appears to be a significant mediator between demographical factors and FTP in affecting retirement planning. An individual's acceptance towards risk is also affected by financial literacy.

Practical implications

The general public, especially female workers group who have no retirement funds, need to be educated on financial literacy. The government might need to encourage other parties and work together to financially educate the public, specifically regarding investments for retirement planning.

Originality/value

Most previous studies on retirement planning focused on demographical factors in general, and not specifically on a certain group. Filling the gap of existing studies, this study specifically discusses retirement planning done by female workers in Indonesia. Women's role as a workforce, with their psychological conditions and financial literacy, makes for an interesting topic to be studied further in terms of retirement planning.

Details

Review of Behavioral Finance, vol. 13 no. 5
Type: Research Article
ISSN: 1940-5979

Keywords

Open Access
Article
Publication date: 16 July 2021

Kulondwa Safari, Charity Njoka and Mugisho Guershom Munkwa

The purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC)…

2577

Abstract

Purpose

The purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC), which is a Sub-Saharan underdeveloped country with a weak pension and social security system.

Design/methodology/approach

This study used a structural equation modeling and a sample of 361 public sector employees selected in Bukavu city in the DRC. The data were collected through a survey questionnaire, and the data were analyzed using SPSS and SMART PLS software.

Findings

The results from the study revealed that financial literacy has a significant impact on personal retirement planning. Two constructs of financial literacy, respectively, computation capability and financial knowledge were found to have a significant impact on personal retirement planning, while financial education and attitudes toward financial products were found not significant in explaining personal retirement planning.

Practical implications

The findings from this study can be used by policy makers in the DRC to design socioeconomic programs, aiming to increase the level of financial literacy in the country and awareness on personal retirement planning.

Originality/value

The reviewed studies were based mostly on developed countries, and countries were the social security system works effectively. We have not found a study on financial literacy and retirement planning that has been conducted in the DRC, which is a country with specific characteristics compared to developed countries.

Details

Journal of Business and Socio-economic Development, vol. 1 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 4 October 2019

Santosh Kumar, Gargi Pant Shukla and Roopali Sharma

The purpose of this paper is to holistically study barriers in the path of implementation of retirement planning, as the need is increasing with decrease in mortality. The…

Abstract

Purpose

The purpose of this paper is to holistically study barriers in the path of implementation of retirement planning, as the need is increasing with decrease in mortality. The proper retirement planning can be one of the most important tools to control financial expenses on healthcare and welfare on old age population in government budgets.

Design/methodology/approach

The paper is a blend of theoretical framework and practical application and uses interpretive structural modeling (ISM) analysis to draw linkage and impact of identified barriers in the path of achievement of goals of retirement planning. The study has used three different research phases: identification of barriers from the literature, interviews with experts of industry at second stage and designing an ISM impact matrix cross-reference multiplication model. The identification phase led to the selection of 15 factors from past literature and by suggestion from industrial experts.

Findings

This study seeks to identify which barrier is acting as the most dominant one for the mass adoption of retirement planning and this result is helpful for policymakers to remove the dominant barrier. The result of this analysis can make retirement planning easy by elimination of highlighted barriers on the basis of their importance in the path of achievement of retirement goals. In the ISM level diagram, barriers such as marital status, number of financial dependents at the bottom, gender, income level, educational level, financial literacy, financial dependency, policy regulation, terms and conditions, goal clarity and psychological and cultural factors are on the top. Barrier of macroeconomic and bureaucratic impediments are also very important factors for achievement of retirement goal of an individual, but they cannot be controlled directly by the associated members of industry.

Originality/value

The concern for providing sufficient retirement resources is growing with the increase in life expectancy for human beings. Such requirement has attracted views from not only academicians but also policymakers. This paper is one of the preliminary attempts to identify barriers in implementation of retirement planning and rank them according to their importance.

Details

Journal of Modelling in Management, vol. 14 no. 4
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 6 April 2010

Debra Grace, Scott Weaven and Mitchell Ross

Although superannuation planning has been examined within the context of individual choice, life course and cumulative advantage perspectives, little research has been…

3575

Abstract

Purpose

Although superannuation planning has been examined within the context of individual choice, life course and cumulative advantage perspectives, little research has been contained within the theories of consumer behavior. This paper, therefore, aims to examine this important issue by delving into the perceptions of retirement planning from the perspectives of both male and female consumers.

Design/methodology/approach

A qualitative research design was adopted to gather in‐depth information within a real‐life context in order to build theory. In total, 21 exploratory semi‐structured interviews, to assist in identifying and describing the variety of thoughts and feelings that female and male consumers hold towards financial retirement planning, were conducted.

Findings

The findings from the in‐depth interviews indicate that males and females adopt different perspectives when it comes to retirement planning. Males tend to adopt an individual choice perspective, whereby it is assumed that retirement will be another stage in life which will provide for a lifestyle conducive with their current standard of living. Women, on the other hand, adopt very much a life course perspective, which makes no assumptions or predictions about future life stages, but one that views outcomes as contingent on the circumstances of one's life.

Originality/value

The value of this research lies in its methodology and analysis. Perceptions of males and females in relation to retirement planning have not before been mapped and, as such, the perpetual maps developed in the paper contribute new knowledge in relation to attitudes and behavior towards retirement financial planning.

Details

Qualitative Market Research: An International Journal, vol. 13 no. 2
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 19 July 2021

Krishna Murari, Shalini Shukla and Bhupendra Adhikari

The aim of this study is to understand the effects of psychological social and financial perceptions of post-retirement life and demographic characteristics on retirement

Abstract

Purpose

The aim of this study is to understand the effects of psychological social and financial perceptions of post-retirement life and demographic characteristics on retirement planning behaviour (RPB) of the employees from different occupational sectors.

Design/methodology/approach

The primary data from 400 employees in central government, state government and private sector is collected through a structured questionnaire. The questionnaire comprised of 43 items to measure social and financial perceptions and RPB along with demographic information. An exploratory factor analysis (EFA) and multiple linear regression (MLR) analysis are performed to find the significant variables of social and financial perceptions influencing the RPB.

Findings

The results of exploratory factor analysis revealed three principle components of social perceptions, four of financial perceptions and three of RPB. The role clarity, involvement, obligations, uncertainty and preparations have significant impact on RPB. This study found a moderate positive correlation between RPB and extracted factors of social and financial perceptions. The study confirms the significant effect of demographic variables such as age, marital status, occupational sector, income and education levels on RPB.

Originality/value

The study has number of implications for government and private sector organisations involved in offering the retirement planning solutions as well as to the employees. The stakeholders may take a note of the role of psychological social (role clarity and social involvement) and financial (financial obligations, uncertainty and preparation for post-retirement life) perceptions that influence RPB. The study also provides an insight to the policy makers for considering the demographic information such as age, education, marital status and income of the employees while designing/offering the choices of retirement plans to them. Further studies are recommended to validate the findings of this study in terms of testing the effect of psychological social and financial perceptions on retirement planning behaviour of the employees.

Details

International Journal of Social Economics, vol. 48 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 20 May 2019

Lucía Rey-Ares, Sara Fernández-López, María Milagros Vivel-Búa and Rubén Lado-Sestayo

This paper aims to investigate whether individuals’ planning horizon influences their decision to save privately for their retirement.

Abstract

Purpose

This paper aims to investigate whether individuals’ planning horizon influences their decision to save privately for their retirement.

Design/methodology/approach

Focussing on Spain, this empirical research uses the fifth wave of the Survey of Health, Ageing and Retirement in Europe (SHARE)[1]. Logit models are estimated considering variables related to demographic characteristics, economic situation, education and cognitive abilities and psychological and social factors.

Findings

The results confirm that the planning horizon significantly influences the decision to save for retirement. Long-term planners are more likely to save for retirement than short-term planners.

Originality/value

Although previous literature has identified the planning horizon as a relevant variable in the decision to save for retirement, few empirical studies have evaluated their impact. This paper shows that it is important to develop habits of financial planning in societies, especially in societies with a prominent orientation towards the present.

Details

Qualitative Research in Financial Markets, vol. 14 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 4 September 2020

Sara Osama Alkhawaja and Mohamed Albaity

This study aims to examine the effect of future time perspective (FTP), financial risk tolerance (FRT) and knowledge of financial planning for retirement (KFPR) on…

Abstract

Purpose

This 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/approach

Primary 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.

Findings

The 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/implications

This 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 implications

A 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/value

To 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.

Details

Journal of Islamic Marketing, vol. 13 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 1 July 2002

Joe James, W. Hadley Leavell and Balasundram Maniam

Reports that few Americans plan financially for their retirement and outlines the possible strategies for doing so, referring to relevant research, e.g. company sponsored…

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Abstract

Reports that few Americans plan financially for their retirement and outlines the possible strategies for doing so, referring to relevant research, e.g. company sponsored pension plans, individual retirement accounts and dependence on social security. Surveys students before and after financial planning instruction to identify any attitude changes. Finds that many had no idea of how to calculate the funds needed to meet their expectations initially, but that after their finance course they became more realistic about their requirements. Concludes that more training in retirement planning is needed for the general public, urges workers, employers and acacdemics to respond to calls for further research.

Details

Managerial Finance, vol. 28 no. 7
Type: Research Article
ISSN: 0307-4358

Keywords

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