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ABSRJ 2022 Volume 13, Number 2

Retirement financial planning: gender, age-related, and expenditure differences among Indonesian households

Faizah Syihab
University of Trilogi, Indonesia
faizah@trilogi.ac.id

Muhammad Luqman Nurhakim
University of Indonesia, Indonesia
luqman11795@gmail.com

Abstract

This study aims to determine which factors influence household perceptions of retirement planning decisions. Age, marital status, salary, level of education, loan payment, and savings habit will be identified as significant variables in the prediction. This study employed the logistic regression (logit) model, with the sample divided into those who have enrolled in a pension plan and those who have not begun to plan for a pension fund. The sample age range was 26 to 58 years old, with a total of 2,808 respondents. This study discovered that for the age range 26-35 years old, obtaining more education, being younger, earning higher salaries, having less loan obligation, and saving less, the household were more likely to have proper retirement planning. However, between the ages of 36 and 58, planning for retirement became more likely as they get older, gain more education, enter marriage life, and have more loan obligations.

Keywords: retirement planning; pension fund; household; logit

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