The influence of psychological factors on financial planning for retirement in China
As China's population ages and the pension system becomes unbalanced, personal savings becomes more important. In this sense, quality financial planning for retirement has been recognized as one of the keys to successful aging in today's society, thus requires further research. The main go...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/39067/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/39067/2/FULLTEXT.pdf |
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| Summary: | As China's population ages and the pension system becomes unbalanced, personal savings becomes more important. In this sense, quality financial planning for retirement has been recognized as one of the keys to successful aging in today's society, thus requires further research. The main goal of this research is to examine the psychological factors that influence financial planning for retirement (FPR). These factors include Future Time Perspective (FTP), Subjective Financial Literacy (SFL), Objective Financial Literacy (OFL), Risk Tolerance (RT), and Retirement Goal Clarity (RGC) based on the Capacity-Willing-Opportunity (CWO) model. This study also focuses on how the interplay between psychological factors can affect FPR, including examining the mediating role of SFL and RGC and the moderating role of OFL. Data were collected using a non-probability sampling method with 245 participants. The data were evaluated with the statistics packages of SPSS 24 and SmartPLS 4.0. The results show a positive association between retirement goal clarity and subjective financial literacy with financial planning for retirement. Subjective financial literacy and retirement goal clarity also played a mediating role. Findings from this research enrich knowledge about FPR and will benefit finance professionals, policy makers, and individuals with insights of the psychological factors that drive people to practice financial planning for retirement. The limitation of the study lies in the fact that psychological factors were not tested combined with demographic factors, the use of self-reported data may cause the biases, and that cross-sectional approach may not prove the relationship among psychological factors and financial planning for retirement at different period. Future study could examine the influence of psychological by controlling demographic variables such as age and income, include the advanced level OFL measurement in the questionnaire, provide more empirical evidence for different countries, and identify temporal and causal relationships. between the study variables in different time periods. |
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