Investigating the Relationship of Financial Literacy to Financial Planning Retirement

Abstract

Personal financial management, budgeting, and investing, or often known as financial knowledge is increasingly recognized as an important component of financial readiness towards retirement. However, the relationship between financial literacy and retirement financial planning is still quite limited explored in academic research. Research related to financial literacy is important to be developed because there is a slight increase in awareness of the urgency of financial literacy in every financial planning because the emergence of the sandwich generation is a failure in financial planning and management for retirement. Investigating the relationship between financial literacy and retirement planning on specific aspects with the most significant impact on retirement planning became the main objective of the study This study conducted an extensive literature review to identify previous research findings and collect data on financial literacy and retirement planning by Using statistical methods to examine the relationship between financial literacy, financial planning,  The onset of the sandwich generation in retirement. The sampling technique used in this study is non-probability sampling using purposive sampling methods and pension planning results. The results of the study stated that financial literacy has a significant positive relationship with retirement financial planning. In addition, the results of the study also stated that the sandwich generation has a significant positive relationship with retirement financial planning.