Financial planning for retirement in young adults: Interaction of professional experience, knowledge, and beliefs

Abstract

The aim of the present study was to examine the impact of professional financial experience on the relationships between financial knowledge and beliefs on financial planning for retirement (FPR) in young adults. We designed a domain-specific personal belief inventory comprising all important components involved in FPR. Financial professionals (n = 145) demonstrated greater knowledge of the financial retirement system compared with non-professionals (n = 382). The two groups, however, differed neither in objective nor self-rated general financial literacy. In non-professionals, higher financial literacy was positively linked to trust in the 2nd pension pillar, self-assessed competence in FPR, personal engagement in FPR, perceiving FPR as less emotionally loaded and FPR task as less complex. These predicted relationships were not found among professionals. Thus, professional experience in financial domain seems to bring a deeper and particularized insight into the pros and cons of the pension system, and consequently vacillates beliefs about FPR.

The effect of financial literacy and gender on retirement planning among young adults

“…Consequently, financial behavior and the use of formal financial products must also play a significant role in retirement decision-making strategies. After analyzing young adults ages 20–35, in Slovakia, Bačová et al (2017) observed that professionals in the financial sector scored as high as nonprofessionals in financial knowledge; however, the former demonstrated more familiarity with money management and retirement plans than the latter. Bongini and Cucinelli (2019) applied Ajzen's TPB (1991) to explain how financial literacy, knowledge about pensions and money management skills directly relate to Italian university students' intentions to save for older age.…”

The Mediating Effect of Financial Self-Efficacy on the Financial Literacy-Behavior Relationship: A Case of Generation Y Professionals

“…These behaviors include the ways money was obtained, saved, invested, and communicated within the family system (Mao et al, 2017). Since a person's financial performing is measured in terms of defined financial goals, financial condition, money-management skills, and a strong financial personality (Bačová et al, 2017), it stands to infer that positive personal financial management behavior improves financial performance in all these areas. Entrop et al (2016) provided conceptual support to indicate that favorable financial behaviors do impact the individual financial performance.…”

Las capacidades financieras como determinantes de la alfabetización alimentaria entre estudiantes universitarios

“…Tabla 1. Bačová et al (2017), en su estudio para comparar la autoconfianza en las habilidades financieras con el conocimiento financiero entre jóvenes profesionales y estudiantes universitarios. Los reactivos se pueden ver en el Anexo 2.…”

“…(1: Sí) Autopercepción de las habilidades financieras personales (FP) FP Del 1 al 5, donde (1) es nada y (5) es muy hábil ¿Qué tan hábil se considera usted en el manejo de sus finanzas personales? Fuente: Atkinson y Messy (2012); Bačová et al (2017); OECD/INFE (2018). Anexo 3.…”