Financial Planning for Retirement: The Mediating Role of Culture

The life expectancy rate of individuals worldwide has risen, and Saudi Arabia is not excluded. Rising long-life may jeopardize employees’ pensions reduce the chances adequate earnings a decent after retirement. Moreover, number employees, who have paid into pension funds are now retired, increased, indicating that expected to decrease. Apart from above, level financial literacy in was substandard. Therefore, ultimate objective this research examine measurable factors could impact employees their planning for retirement (FPR). These comprise employee’s (FL), risk tolerance (FRT), cultural based on CWO model. study aims investigate mediating roles culture relationship with Primary data collected during COVID-19 pandemic mid-July 2020 until end January 2021 using non-probability convenience sampling approach involving 525 participants. Structural Equation Modelling (SEM) technique used analyze data. To determine type variables, either formative or reflective model Confirmatory Tetrad Analysis (CTA-PLS) used. results show significant influence basic FL, FRT, FPR. it shows critical role among those advanced FL FRT. Previous studies examined FRT FPR without considering effect as mediator.