Future Perspectives: The Key To Successful Retirement Planning: A Study Of Financial Behavior

The purpose of this study is to analyse the financial behavior (financial literacy, risk preferences, and locus of control) and future perspectives of Generation Z in retirement planning in West Sumatra. This research is explanatory. The population in this study is the community in West Sumatra. The sampling technique used was random sampling. A total of 418 respondents were collected. The data used consisted of secondary and primary data obtained directly from the field through questionnaires distributed to respondents. The data processing technique used the PLS-based SEM method. The results of this study only rejected one hypothesis, namely H1, which indicates that a person's level of financial literacy does not directly influence retirement saving behavior. Hypotheses H2, H3, and H4, which stated that locus of control, perceived financial risk, and future time perspective had a significant positive effect on retirement saving behavior, were accepted. Hypotheses H5a, H5b, and H5c were accepted. These three hypotheses indicate that locus of control, perceived financial risk, and future time perspective contribute significantly to future time perspective. The mediating effect of the FTP variable was discussed with three hypotheses: H6a, H6b, and H6c. These hypotheses were accepted because FTP acted as a significant mediator. This study empirically proves that FTP strengthens the direct relationship, not just mediation, between risk perception and retirement behavior. These results contribute significantly to demonstrating that FTP is not only a psychological construct but also a predictor of actual financial behavior, even in age groups and education levels that are not yet considered financially mature.