RETIREMENT PLANNING: THE IMPACT OF SAVING BEHAVIOR AND INVESTMENT BEHAVIOR

Abstract

Purpose The objective of this study is to find whether the saving behavior and investment behavior has a significant impact on retirement planning, also to find whether the saving behavior has a significant impact on investment behavior. Design/ Methodology/ Approach This research study was conducted using quantitative method, which the primary data was collected from the questionnaire filled by 350 working individuals from age 26 to 55 years old in Padang. The questionnaire were analyzed using validity and reliability test. The validity and reliability test found that all questions (16 questions) are valid & reliable, and can be processed further. The hypotheses and research model of this study were tested using Structural Equation Modelling. Findings This study found that saving behavior has a significant impact on investment behavior, also saving behavior has a significant impact on retirement planning. While, this research also discovered that investment behavior does not have a significant impact on retirement planning. Originality/ Value This study is the first study which discussed about the impact of saving behavior and investment behavior towards retirement planning in Padang. This research also try to find the impact of saving behavior towards investment behavior. Moreover, the previous observations which discussed the similar topic commonly discover the positive impact among saving behavior and investment behavior towards retirement planning. Thus, the researcher wants to find out whether the population in Padang has a positive result among saving behavior, investment behavior and retirement planning.