Retirement Planning: A Moderated Mediation Model of Cognitive Beliefs, Retirement Planning Attitude, and Money Availability

Authors

  • AFM Jalal Ahamed University of Skövde
  • Professor Dr. Yam B. Limbu Professor of Marketing, Feliciano School of Business, Montclair State University 1 Normal Avenue, Montclair, NJ 07043

DOI:

https://doi.org/10.61190/fsr.v32i2.3555

Keywords:

Retirement Planning Intention, Retirement Planning Attitude, Financial Self-Efficacy, Financial Risk Tolerance, Financial availability, Cognitive Appraisal Theory, Developing Country, Moderated Mediation Model

Abstract

Retirement planning has been extensively studied in developed countries; however, it received scant scholarly attention in developing nations. Thus, this study examines the role of cognitive factors in retirement planning intentions in the context of a developing country, focusing on financial risk tolerance and self-efficacy within the cognitive appraisal theory framework, considering the mediating role of retirement planning attitudes and the moderating impact of financial resource availability. A survey was conducted in Dhaka, Bangladesh, with 301 valid responses analyzed using a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. Findings reveal that retirement planning attitudes mediate the relationship between cognitive factors and retirement planning intentions. Interestingly, risk tolerance negatively impacts retirement planning intentions through attitudes, while financial self-efficacy shows a positive influence. Furthermore, the availability of financial resources moderates these relationships, indicating that retirement planning attitudes significantly influence intentions when financial resource availability is low. This research contributes to the understanding of retirement planning in a developing country context, highlighting the importance of cognitive factors and financial resources. It suggests that tailored retirement planning strategies should consider individual financial conditions and cognitive beliefs. The insights are valuable for policymakers and financial advisors, particularly in developing nations.

Author Biography

Professor Dr. Yam B. Limbu, Professor of Marketing, Feliciano School of Business, Montclair State University 1 Normal Avenue, Montclair, NJ 07043

Yam B. Limbu, Ph.D.
Professor of Marketing, Feliciano School of Business
Montclair State University
1 Normal Avenue, Montclair, NJ 07043
Phone: 973-655-3361

Fax: 973-655-7673

Email: limbuy@montclair.edu

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Published

2024-06-10

How to Cite

Ahamed, A. J., & Limbu, Y. B. (2024). Retirement Planning: A Moderated Mediation Model of Cognitive Beliefs, Retirement Planning Attitude, and Money Availability . Financial Services Review: The Journal of Individual Financial Management, 32(2), 77–93. https://doi.org/10.61190/fsr.v32i2.3555

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Section

New Original Submission