Too Far Away to Care about? Predicting Psychological Preparedness for Retirement Financial Planning among Young Employed Adults
Too Far Away to Care about? Predicting Psychological Preparedness for Retirement Financial Planning among Young Employed Adults

Summary/Abstract: Knowing which factors underlie beliefs concerning financial planning for retirement (FPR) among young adults is essential for designing interventions to support their actual FPR. Therefore, we examined predictors of FPR-related beliefs and current retirement savings in a sample of 502 employed Slovak adults aged 20 to 35 years. Actual savings and all dimensions of psychological preparedness for FPR were positively predicted by retirement financial literacy and self-rated financial literacy. Moreover, we found that perceived FPR emotional load decreases with education, and perceived FPR task complexity diminishes with age. Further, increasing income was predictive of a higher subjective FPR competence and a perception of FPR as less stressful. Finally, professional experience in the financial domain was linked to a higher self-assessed capability in terms of FPR, but also with a lower personal FPR engagement. Our findings stress the need for effective communication of information about FPR’s relevance to young people.

• Details
• Contents