Gizelle D. Willows

Develop a retirement plan and stick to it

Introduction

Develop a retirement plan and stick to it. Boost retirement savings! This study links financial literacy, behavior, and attitude. Learn how developing a plan and consulting financial planners significantly improves retirement success.

Abstract

This study explores the relationship between financial literacy, behavior and attitude, and retire- ment savings decisions. Members of a South African tertiary institution’s retirement fund were sur- veyed and multistage multivariate regression and mediation analyses showed that developing and conforming to a retirement plan positively influenced financial attitude and behavior. This indicates that interventions should focus on the specific behaviors which drive retirement planning, rather than financial literacy in isolation. Use of formal tools such as consulting with a financial planner also increases the relative risk of successful retirement planning. This presents a tangible and linear approach towards improved financial behavior.

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