Determinants of Retirement Planning and Retirement Readiness among Indonesian Civil Servants: The Roles of Financial Literacy and Financial Risk Tolerance
DOI:
https://doi.org/10.59890/ijma.v4i3.17Keywords:
Financial Literacy, Financial Risk Tolerance, Retirement Planning, Retirement Readiness, Civil ServantsAbstract
This study examines retirement planning and retirement readiness among Indonesian civil servants by evaluates how variations in financial literacy and individual financial risk tolerance influence these preparatory behaviors. Using a quantitative approach, data were collected through an online survey of 208 civil servants from Institution X in Indonesia and analyzed using PLS-SEM with SmartPLS 4. The findings show that financial literacy significantly affects financial risk tolerance, retirement planning, and retirement readiness. Financial risk tolerance also significantly influences retirement planning, while retirement planning significantly improves retirement readiness. Retirement planning further mediates the effects of financial literacy and financial risk tolerance on retirement readiness. These results imply that improving financial literacy and structured retirement planning is essential to strengthen civil servants’ retirement preparedness.
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