Bridging the Intention-Behavior Gap in Retirement Planning: A Theory of Planned Behavior Perspective

Abstract: Among self-employed professionals, retirement confidence is becominga major component of the individual’s ability to provide for themselvesfinancially after retirement. Unlike salaried employees, self-employed peopleexperience greater uncertainty about how their financial future will compareto people they work for. Self-employed persons are fully responsible forcreating a plan to save for retirement and providing for their own future, andin this paper, we will analyze and review the relationship between financialknowledge, behavioral intent, and the level of confidence that self-employedprofessionals have about their ability to plan for retirement as part of theTheory of Planned Behaviour (TPB). The study will propose a conceptualmodel illustrating how financial literacy (financial knowledge), thedevelopment of positive financial planning behavior, and feelings of controlaffect a person’s confidence level regarding the planning of retirement.Behavioral intent; defined as an individual’s willingness to act or perform acertain behavior; will serve as a mediator between financial knowledge andretirement planning behaviors. Based on existing literature; the study proposesa theoretical framework that shows how financial literacy, subjective norm,and perceived control all contribute to an individual’s confidence levelregarding retirement planning. Additionally, the study will provide someimplications for the practical application of designing programs to assistself-employed individuals improve their retirement outcome. There are alsosome potential future research directions identified within the literature.