THE INFLUENCE OF FINANCIAL LITERACY TOWARDS FINANCIAL MANAGEMENT PRACTICES AND ITS IMPLICATION ON RETIREMENT CONFIDENCE (A CASE OF WORKING WOMEN IN PRIVATE SECTOR IN JAKARTA)

Abstract

The awareness of retirement confidence has been found to be low in many people, especially in women. According to HSBC (2015), men are more confident than women regarding in preparing retirement savings. Around 38% of women respondents are less confident than men. Much of previous studies and research has found retirement confidence is influenced by financial literacy and mediated by financial management practices. This study aims to examine the influence of financial literacy, financial management practices and retirement confidence among Jakarta women whose has age 25 – 55 years and working in private sectors. This research conducted on Jakarta women which working in private sectors and have as the respondents. The total of respondent was 260 respondents. Data analysis using structural equation modeling (SEM) to indicate the influence of financial literacy, financial management practices on retirement confidence of the respondents. Result found that financial literacy has influenced retirement confident indirectly and mediated by financial management practices as mediating role.