The impact of financial factors on retirement planning among students university in Ho Chi Minh City

Abstract

Research problems: In the industrialized world, retirement has extended in duration, and as a result, the number of pensioners has increased as well, raising concerns about the viability of social safety net programs like social security. The sequence of actions involved in building wealth to meet needs in the post-retirement period of life makes up retirement financial planning. The unfavorable short-, medium- , and long-term effects of poor financial planning for retirement harm not just the individuals but also their homes, extended families, and ultimately the entire society. This research aims to investigate the factors that influence the choice to join individual pension plans as well as the quantity of money contributed to those plans. Additionally, this study assesses the probable influence that income plays, which hasn't been thoroughly examined in the financial literature before. Furthermore, this study also confirms the importance of Financial Literacy and Attitudes as well as specific Financial Goals for Investment Intentions in Retirement Planning Behavior of students in HCM City. Research objectives: The article is carried out with the following three goals. Build a research model, test a scale of factors affecting students' personal financial preparation for retirement and propose directions. Test and measure factors in the model that impact students' personal financial preparation and intention to invest in funds for retirement. Suggest some recommendations to the administrator. Research methods: This article applies a quantitative research approach. Data collection, using convenience sampling, was conducted online through the Google form. Using SmartPLS software version 4, the authors analyzed the data collected using partial least squares structural equation modeling (PLS-SEM) techniques. Research results: Research results show that the variables Financial Attitudes, Financial Literacy, Financial Goals and Intention to invest all have an influence on Retirement Planning Behavior. Nevertheless, no mediation relationship of investing intention was seen in the results. Theoretical and practical applications: The study provides students in Ho Chi Minh City with the importance of financial literacy, attitudes and goals. Thereby, helping students have financial plans for a comfortable retirement in the future.