FINANCIAL LITERACY AND RETIREMENT PLANNING AMONG WOMEN IN PRODUCTIVE AGE
Keywords:
Financial Literacy, Retirement Planning, Gender Gap, Savings behaviors, Women financial literacyAbstract
A survey conducted by World Bank Survey [1] shows that Indonesia have a low financial literacy level compared to other countries. We examine Financial Literacy and Saving Behavior among 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 respondents. This research diversified respondents into three types of planners: Simple, Serious and Committed Planner following [2] framework. Results of Logistics regression shows 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. Interestingly, we also found that education and maturity factors such as Marital Status, Age, and having children also affect someone preparedness for being a planner. The results also show women are lower in financial literacy level and retirement planning preparedness compared to men.
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