The Relationship Between Psychological Factors and Retirement Financial Plan and Its Gender Difference

As China’s population ages and the sustainability of the public pension system is at risk, personal savings become crucial. As such, the quality of financial planning for retirement (FPR) has been recognized as a key to safeguarding financial well-being during retirement. This study examines the relationships of two predictors (future time perspective and risk tolerance) and a mediator (subjective financial literacy) in shaping financial planning for retirement, with particular attention to potential gender differences. Using survey data retrieved from respondents aged between 23 and 60 years old, overall sample and gender-based multigroup analysis were used to examine whether gender moderates these relationships. The results reveal that both future time perspective and subjective financial literacy positively influence financial planning for retirement across all gender groups. Notably, we found no significant gender gap in retirement planning behavior. Subjective financial literacy serves as a significant mediator linking both future time perspective and risk tolerance to retirement planning, though the indirect effect of risk tolerance through financial literacy differs significantly between genders. Academically, theoretical propositions related to retirement planning can be accounted for by both genders. Practically, standardized policy can be tailored to address retirement issues across genders. The study emphasizes that financial planning for retirement in China shows no gender gap, and this provides meaningful guidance to policymakers and financial institutions to develop measures to encourage individuals to take financial actions in retirement planning. Finally, the combined interpretation of a strong effect of subjective financial literacy and an insignificant effect of risk tolerance raises concern that adult income earners in China are affected by financial literacy bias when practicing financial retirement planning.