THE RELATION BETWEEN FINANCIAL LITERACY, LEVEL OF INCOME, PERCEIVED FINANCIAL RISK TO DEBT BEHAVIOR AND FINANCIAL READINESS TO RETIRE (A CASE OF JABODETABEK MILLENNIAL

Abstract

Purpose – The Purpose of this research paper is to focus on findings the relation between the financial literacy, level of income, and perceived financial risk to debt behavior and its relation to financial readiness of millennials to retire in the future. Design/ Methodology/ Approach – The model in this research is Structural Equation Model (SEM) to examine the relationship of the variables and use an online survey to collecting data. Findings – The result shows that the debt behavior is positively affected by the financial literacy, level of income, and perceived financial risk meanwhile, the debt behavior has no significant relationship with financial readiness to retire. Research Limitation - This research focusing on millennials generation who work and live in Jabodetabek area.