DETERMINANTS INFLUENCING RETIREMENT PLANNING BEHAVIOR AMONG MIDDLE-AGED INDIVIDUALS

Abstract

Abstract: Retirement planning has become an essential aspect of financial well-being, particularly for middle-aged individuals who are approaching the transition from active income generation to financial dependency. This study aims to examine the determinants influencing retirement planning behavior among middle-aged individuals. Grounded in behavioral finance and life-cycle theory, the research focuses on key factors such as financial literacy, income level, risk tolerance, future orientation, and savings attitude. A descriptive research design is adopted, with primary data collected through a structured questionnaire from middle-aged respondents. The study employs statistical tools, including descriptive statistics, correlation analysis and t – test to evaluate the relationship between selected determinants and retirement planning behavior. The findings reveal that financial literacy, stable income, and future orientation have a significant positive impact on retirement planning, while psychological factors such as risk tolerance and savings attitude also contribute meaningfully. The study offers valuable insights for policymakers and financial practitioners in designing effective financial education programs and retirement strategies. Keywords: Retirement Planning, Financial Literacy, Risk Tolerance, Savings Behavior, Middle-Aged Individuals, Behavioral Finance