FACTORS AFFECTING RETIREMENT CONFIDENCE AND ITS IMPLICATIONS ON RAISING RETIREMENT AGE

Abstract

The ageing workforce has created a number of issues, one of which is the increased interest in, and importance of, the retirement of older workers. Governments are encouraging older workers to continue working later in life, and to delay their retirement to offset the dependence on the support of (the fewer) younger workers. The aim of this study is to identify the influence of factors affecting retirement confidence, and its implication on raising retirement age in Jakarta. The result of this research is expected to be helpful to evaluate the effectiveness of factors on retirement confidence and its implication on raising retirement age in Jakarta. Theoretical framework of affecting factors which is performed by health, income level, saving behaviour, financial management, and intrinsic factors were used to analyze this approach as well as the theory of retirement confidence and raising retirement age. The survey is conducted on Jakarta worker whose age minimum 20 years, live in Jakarta, and have a plan to retire above age 50 years. The data were collected through the distribution of the questionnaire that spread in Jakarta. With 245 respondents, the data obtained was processed through statistical software by using factor analysis and structural equation modeling. The result were concluded several factors such as health, income level, saving behaviour, financial management, and intrinsic factors have a positive effect on retirement confidence and have implication on raising retirement age.