COLLEGE STUDENTS’ VIEW ON RETIREMENT PLANNING

• Main Author: Yuono Putri, Erika
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57617
• Institution: Institut Teknologi Bandung

The participation of pension funds in Indonesia is still low according to (Otoritas Jasa Keuangan, 2019) which is only 5.48% from around 80 million workers while it is also decreased by 5.34% from 2018. The average financial literacy index in Indonesia is at the level of 29.7% while the financial literacy in the pension funds sector is just 10.9%. Considering that the financial literacy index of pension funds in Indonesia is still low, the awareness regarding retirement planning needs to be developed especially for the younger generation. College students become the strategic target as they have not worked yet and still have enough time to enrich their knowledge regarding retirement planning. Further, the younger generation will also dominate this country population in 2030-2040 at the amount of 64% of the total population (Afandi, 2017). The objective of this research is to define the factors that significantly affect college student’s intention to invest in a pension fund. This research will focus on several factors which have already been tested by previous study in Italy (Bongini and Cucinelli, 2019), including the theory of planned behavior proposed by (Ajzen, 1991). By using logistic regression, this research confirmed that Attitude, Perceived Behavioural Control and Money Management are the factors that significantly influenced college students’ intention to invest in a pension fund.