RETIREMENT PLANNING FOR THE WORKER: A Financial Behavior Management Model Moderated By Social Influence

Etty Sri Wahyuni; Rozaini Binti Rosli

doi:10.61132/greeninflation.v1i3.41

Authors

Etty Sri Wahyuni Universitas Batam and Lincoln Univerisity
Rozaini Binti Rosli Lincoln University

DOI:

https://doi.org/10.61132/greeninflation.v1i3.41

Keywords:

Retirement planning, financial behavior, social influence, manufacturing workers, Batam Indonesia

Abstract

This study examines the complex dynamics of retirement planning among manufacturing workers in Batam, Indonesia, focusing on the interplay between financial behavior, social influence, and retirement planning outcomes. Utilizing a quantitative associative approach, the research surveyed 100 workers from diverse demographic backgrounds in Batam's manufacturing sector. The study employed Smart-PLS 3 software for structural equation modeling and path analysis. Key findings reveal that while financial behavior positively influences retirement planning (β=0.196, p=0.032), social influence exhibits a much stronger positive effect (β=0.858, p=0.000). Interestingly, social influence negatively moderates the relationship between financial behavior and retirement planning (β=-0.176, p=0.037), suggesting that social factors may sometimes counteract individual financial practices. These results underscore the complexity of retirement planning in industrial urban settings, highlighting the need for a nuanced approach that considers both individual financial literacy and broader social contexts. The study concludes by recommending holistic strategies that combine traditional financial education with community-based interventions to enhance retirement planning effectiveness among workers in rapidly developing industrial cities like Batam.

Downloads

Download data is not yet available.

References

Agarwal, S., Qian, W., Reeb, D. M., & Sing, T. F. (2019). Learning from peers' financial behavior: Evidence from a field experiment. Journal of Financial Economics, 131(3), 642-658.

Bian, Y., Li, L., & Li, J. (2022). Social influence and career success: A study of Chinese workers. Social Networks, 68, 156-166.

Clark, R. L., Hammond, R. G., & Khalaf, C. (2021). Planning for retirement? The importance of time preferences. Journal of Labor Economics, 39(2), 501-534.

Guven, C., & Ertan, A. (2022). Financial behavior and well-being: The role of social networks. Economic Inquiry, 60(4), 1548-1569.

Haque, A., & Zulfiqar, M. (2021). Factors influencing investment decision-making behavior among young investors: The mediating role of financial literacy. Global Business Review, 22(4), 1009-1031.

Limbu, Y. B., & Sato, S. (2019). Credit card literacy and financial well-being of college students: A moderated mediation model of self-efficacy and credit card number. International Journal of Bank Marketing, 37(4), 991-1003.

Lusardi, A., & Mitchell, O. S. (2023). Financial literacy and financial behavior at older ages. Pacific-Basin Finance Journal, 67, 101597.

Nguyen, T. A. N., Polách, J., & Vozňáková, I. (2019). The role of financial literacy in retirement investment choice. Equilibrium. Quarterly Journal of Economics and Economic Policy, 14(4), 569–589. https://doi.org/10.24136/eq.2019.027

Ozbek, V., Gunalan, M., & Koc, F. (2023). The effects of financial literacy and risk perception on the adoption of financial technology. Journal of Financial Services Marketing, 28(1), 21-35.

Potrich, A. C. G., Vieira, K. M., & Mendes-Da-Silva, W. (2022). Financial literacy and financial behavior: What's the relationship in times of crisis? Journal of Behavioral and Experimental Finance, 33, 100612.

Wahyuni, E. S., & Ramadhan, F. (2022). Manajemen Keuangan: Konsep Perilaku Keuangan Sebagai Dasar Pengambilan Keputusan Era Digital. Medan: CV. Tunnga Esti.

Wahyuni, E. S., Fachrudin, K., & Silalahi, A. P. (2019). An empirical study on women’s financial behavior: Case study of female postgraduate students in Medan, Indonesia. International Journal Of Research Culture Society, 3(11), 155-159.

Xiao, J. J., & Porto, N. (2019). Financial education and financial satisfaction: Financial literacy, behavior, and capability as mediators. International Journal of Bank Marketing, 37(5), 1169-1189.