Assessing the role of psychology, cognitive attribute and opportunity in determining retirement planning behaviour

Purpose This study examines the interrelationships among future time perspective (FTP), retirement goal clarity (RGC), financial knowledge (FK) and income stability in shaping retirement planning behaviour. Design/methodology/approach Data were collected through survey-based questionnaires distributed to individuals aged 20 years and older. We employed partial least squares structural equation modelling (PLS-SEM) to analyse the data and test our hypotheses. Findings Our findings indicate no significant direct relationship between FTP and RPB. FK has a marginal direct relationship with RPB. However, an indirect relationship is significant for both FTP and FK through the mediating effect of RGC. Hence, RGC is the primary mechanism that translates capacity into planning behaviour. Income stability significantly and negatively influences RPB. Subsample analyses reveal that FTP, RGG and RPB remain consistent across all subgroups, while the direct effects of FK and income stability vary across different subgroups. Originality/value Our study adds to the understanding of retirement planning in developing economies with different economic, social, and cultural dynamics compared to developed nations. We also integrate Hershey et al.’s (2013) capacity, willingness and opportunity model and Beach's (1998) image theory to analyse the interrelationships between psychological, cognitive and situational factors affecting RPB.