Influence of Attitude, Future Time Orientation on Financial Planning for Retirement – A PLS SEM Approach

Abstract

Retirement is a transition phase in the working life of an individual. It is vital to plan for financial security during retirement at an early age to accumulate sufficient corpus for retired life. Psychological factors like Attitude towards retirement planning and Future Time Orientation of a person greatly impacts his/her Retirement Financial Behaviour. The present research is carried out with an aim to explore the influence of these psychological factors on Financial Planning for Retirement. Data was collected from Teachers working in higher educational institutions in Mumbai city. Partial Least Square based Structural Equation Modeling is used to understand the role of Attitude and Future Time Orientation in Financial Planning for Retirement. The research findings revealed that attitude of a person towards retirement planning and his thinking about future have significant influence on Financial Planning for Retirement. The study has social significance as findings would help the future retirees, financial advisors, financial institutions as well as regulatory authorities like PFRDA, RBI and SEBI.