Factors Influencing Employee Retirement Financial Planning: Evidence from Thai Higher Education Institutions

Abstract

This research aimed to examine the factors that impact the financial planning for retirement among employees in Thai Rajabhat universities. To validate the theoretical framework and the collected empirical data, we utilized the confirmation factor analysis method, which allowed us to assess the relationship between the factors and examine how well the data fits the proposed model. We collected data from a sample of 433 employees by administering a 5-point Likert scale questionnaire. The collected data was subsequently analyzed using the Lavaan package in R Studio software. The research findings revealed that knowledge and understanding, financial status assessment, expected return or investment strategy, risk acceptance or risk tolerance, setting goals in life or goals’ clarity, and alternative sources of income or other income played important roles in shaping retirement financial planning among our study participants. To evaluate the theoretical structural model, we conducted statistical analyses and found that it fitted the empirical data at a significance level of 0.05. The statistical results of CMIN/df = 11, GFI = 0.941, AGFI = 0.848, FI = 0.946, and RMSEA = 0.000 provided evidence for the validity and reliability of the proposed model. Going forward, the resulting model will serve as a guideline to evaluate the efficiency of financial planning for the retirement of employees, provide solutions to identified problems, and inform policies and programs that aim to improve retirement financial planning for employees in the higher education sector. Doi: 10.28991/ESJ-2024-08-04-08 Full Text: PDF

Keywords

• financial planning
• retirement age
• employees
• confirmatory factor analysis
• rajabhat university
• thailand.