FINANCIAL LITERACY, SAVING BEHAVIOR AND DEMOGRAPHIC FACTORS IMPACT TO RETIREMENT PLANNING AMONG GENDER IN PRODUCTIVE AGE IN JAKARTA

• Main Author: Andani (NIM 19014067), Stacia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24371
• Institution: Institut Teknologi Bandung

A survey conducted by World Bank Survey (2015) showed that Indonesia has a low financial literacy level compared to other countries. This research discussed Financial Literacy, Saving Behavior and Demographic Factors among gender in the productive age in Jakarta, the capital city of Indonesia, and see the impact from both aspects to their retirement preparedness. A survey was conducted using questionnaire in Jakarta with 226 <br /> <br /> respondents. This research diversified respondents into three types of planners: Simple, Serious and Committed Planner following Lusardi and Mitchell (2008) framework. Results of Logistics regression showed that only saving behavior is significantly affect someone for being a simple and Serious Planner while high financial literate people have higher probability to be a Committed Planner. This research also found that education and maturity <br /> <br /> factors such as Marital Status, Age, and having children also affect someone preparedness for being a planner. The results also showed women are lower in financial literacy level and retirement planning preparedness compared to men. In conclusion, financial literacy and saving behavior are important since both are linked to retirement planning thus affecting someone’s preparedness. Results of this study suggest to increase the financial literacy level of productive age Jakarta citizen, especially women who less likely to be a <br /> <br /> planner, in order to increase their retirement planning preparedness. Embracing saving behavior between Jakarta productive age people is also important. Thus increasing their quality of life.