The effect of Financial Self-Efficacy and Retirement Goal Clarity on Retirement Planning Fulfillment: The Mediating role of Financial Planning Complemented by Social Activity and Risk Perception

This study aimed to investigate how financial self-efficacy (FSE), and retirement goal clarity (RGC) on affect retirement planning fulfillment (RPF). We propose these effect are mediated by Financial Planning for Retirement (FPR). We also contend that social activity (SA) and risk perception (RP) moderate the effect of FSE and RGC on FPR and retirement planning fulfillment (RPF), in a way that high levels of social activity and risk perception would augment the affect of FSE, and RGC on both FPR and RPF. A nonprobability purposive sampling technique is applied to gather data from 300 employees who are 40 years or older, from Pakistan's private and public organizations. A five-point Likert scale questionnaire is used to collect data, which was later analyzed using PLS-SEM. Results demonstrate that FSE significantly affects FPR and RPF. FPR in turn enhances RPF. However, RGC significantly enhances FPR, but insignificantly affects RPF. Hence, FPR negatively mediates between FSE and RPF, and positively mediates between RGC and RPF. With regards to moderation effects, SA significantly moderate between FSE and RPF. RP significantly moderate between FSE and RPF. This study contributes to the literature by offering empirical evidence on how individual psychological and behavioral factors, along with social and perceptual influences, shape retirement outcomes. The findings are significant for policymakers, financial advisors, and organizations in developing tailored retirement planning strategies to enhance financial well being in later life.