Anchored in the future: How parental influence, goal clarity, and saving behavior alleviate retirement anxiety

Abstract

Orientation: This study investigates retirement planning complexities among pre-retirees in Nigerian universities, focusing on parental guidance and individual financial strategies.

Research purpose: The aim is to examine the impact of parental influence, retirement goal clarity and saving behaviour on retirement anxiety among Nigerian university pre-retirees.

Motivation for the study: Considering Nigeria’s economic and pension challenges, this study explores key factors in retirement planning, particularly parental influence and individual financial strategies and their role in alleviating retirement anxiety.

Research approach/design and method: A quantitative approach was used to analyse data from 926 participants (695 males and 231 females) through structural equation modelling. The study utilised measures for Parental Influence, Retirement Goal Clarity, Retirement Saving Behaviour and Nigerian Pre-retirement Anxiety.

Main findings: Parental influence was found to be a significant predictor of retirement anxiety. Contrary to expectations, retirement goal clarity and saving behaviour serially mediated the relationship between parental influence and retirement anxiety.

Practical/managerial implications: The results underline the need for comprehensive financial education programmes and robust pension schemes. Incorporating parents in financial literacy initiatives and offering retirement planning support in workplaces, particularly in academic settings, is essential.

Contribution/value-add: This research enriches retirement planning literature in developing countries by showcasing the intricate mix of cultural, socio-economic and familial factors. It expands the Financial Socialisation Theory, highlighting parental influence’s role in Nigeria and saving behaviour’s significance in diminishing retirement anxiety. The findings offer broader implications for improving financial security in retirement beyond Nigeria, applicable to similar socio-economic environments.