PSYCHOLOGICAL DRIVERS OF RETIREMENT SAVING BEHAVIOR: THE MEDIATING ROLE OF LOCUS OF CONTROL IN FINANCIAL LITERACY, RISK TOLERANCE, AND FUTURE ORIENTATION

Henny Sulistianingsih, Fitri Santi, Maivalinda Maivalinda, Rita Srihasnita, Muhammad Irfan Florid, Edriny Nur Fadla

Abstract


This study aims to examine the effects of financial literacy, future time perspective, and financial risk perception on pension saving behavior, as well as to test the mediating role of locus of control in these relationships among young adults. The research employs a descriptive quantitative approach with a causal research design to analyze the relationships and causal influences among variables. The population consists of adult residents of Padang, with samples selected using random sampling techniques. Primary data were collected through structured questionnaires and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The findings indicate that financial literacy, future time perspective, and financial risk perception are relevant factors in explaining pension saving behavior. However, locus of control does not significantly mediate the effects of financial literacy, future time perspective, and financial risk perception on pension saving behavior. These results suggest that while psychological and cognitive factors play an important role in shaping long-term financial behavior, locus of control may not function as an intervening mechanism in this context. The study provides practical implications for the development of financial literacy education, behavioral-based pension policies, and strategies to encourage early pension saving among young adults.

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DOI: https://doi.org/10.31846/jae.v14i2.1052

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