ROLE OF RETIREMENT SELF-EFFICACY IN EXPLAINING RETIREMENT PLANNING

Abstract

The literature on retirement planning has identified various factors that affect retirement planning. Though many researchers had examined the role of demographic and social factors that affect retirement planning, researches examining the role of psychological factors are less. A person's perceived self-efficacy has an influence on his or her choice of goals and the efforts he or she put forth to accomplish those goals. Hence this study aims to compute the level of task-specific self-efficacy related to retirement, also known as retirement self-efficacy possessed by the employees. The study also attempts to find out the discriminating power of retirement self-efficacy factors in discriminating the level of financial preparedness for retirement. The study was able to produce a highly significant discriminant function. The results highlight the use of retirement self-efficacy to predict the level of financial preparedness for retirement