The Impact of Financial Literacy on Retirement Planning with Serial Mediation of Financial Risk Tolerance and Saving Behavior: Evidence of Medium Entrepreneurs in Indonesia

Subur Harahap (), Armanu Thoyib, Sumiati Sumiati and Atim Djazuli
Additional contact information
Subur Harahap: Department of Management, Faculty of Economics and Business, University of Brawijaya Malang, Malang 65145, Indonesia
Armanu Thoyib: Department of Management, Faculty of Economics and Business, University of Brawijaya Malang, Malang 65145, Indonesia
Sumiati Sumiati: Department of Management, Faculty of Economics and Business, University of Brawijaya Malang, Malang 65145, Indonesia
Atim Djazuli: Department of Management, Faculty of Economics and Business, University of Brawijaya Malang, Malang 65145, Indonesia

IJFS, 2022, vol. 10, issue 3, 1-22

Abstract: This research examined the gist of financial literacy on the medium entrepreneurs in Indonesia, impacting the retirement planning through some mediator and moderating variables. Implementing the prospect theory and theory of planned behavior to explore these interactions, a series of hypotheses were constructed, considering financial risk tolerance and saving behavior as mediator variables and herding behavior as moderator variables. The study examined partial least square-structural equation modelling (PLS-SEM) obtained by sampling data from 388 entrepreneurs of medium-scale in the Bekasi Regency, Indonesia. The study revealed (a) how financial literacy on retirement planning is serial mediated by financial risk tolerance and saving behavior, (b) herding behavior can strengthen financial literacy’s influence on retirement planning, and (c) saving behavior as a mediator does not influence the relationship between financial literacy and retirement planning. The study confirms how financial risk tolerance and herding behavior bridge a positive relationship between financial literacy and retirement planning.

Keywords: financial literacy; financial risk tolerance; saving behavior; retirement planning; herding behavior (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2227-7072/10/3/66/pdf (application/pdf)
https://www.mdpi.com/2227-7072/10/3/66/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:10:y:2022:i:3:p:66-:d:883739

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().