Eurasia: Economics & Business (Aug 2023)

FINANCIAL RISK TOLERANCE AND KNOWLEDGE OF FINANCIAL PLANNING FOR RETIREMENT ON RETIREMENT SAVING BEHAVIOR: A STUDY ON WORKERS IN BANDUNG CITY, INDONESIA

  • Dai R.M.,
  • Hakim M.A.

Journal volume & issue
Vol. 74, no. 8
pp. 117 – 121

Abstract

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This research aims to examine the influence of financial risk tolerance, knowledge of financial planning for retirement on retirement saving behavior at worker at Bandung City, Indonesia. A survey utilizing a quantitative research method and 100 respondents was employed. Data were analyzed using The Structural Equation Model-Partial Least Square (SEM-PLS) to evaluate the inner and outer model, also test the hypotheses. The results showed that Financial Risk Tolerance and Knowledge of Financial Planning for Retirement has simultaneously have a positive effect on Retirement Saving Behavior. The size of the impact value is seen from the original sample value of 54.1%. This research can contribute for development of financial literacy for retirement so companies can have awareness about it.

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