Exploring the impact of financial behavior on retirement financial planning: The moderating role of financial literacy

Abstract

This study aims to examine the influence of financial behavior on retirement financial planning among working-age individuals in Hat Yai, Songkhla, Thailand, with a particular focus on the moderating role of financial literacy. Data were collected from 385 participants and analyzed using multiple regression and moderation techniques, with financial literacy categorized into financial knowledge, saving knowledge, and retirement knowledge. The findings reveal a strong and positive relationship between proactive financial behaviors and retirement financial planning, with saving knowledge showing the most significant moderating effect by amplifying the impact of financial behavior on retirement preparedness. These results confirm the essential role of financial literacy, particularly saving knowledge in strengthening the relationship between financial behavior and retirement readiness. The study offers practical insights for policymakers, educators, and financial service providers to design targeted financial literacy programs, emphasizing savings-oriented strategies to enhance retirement preparedness in economically diverse regional populations.