Impact of anticipated regrets after-retirement on retirement planning behavior of the Nigerian workers

Abstract

Aged people often express regret about financial decisions made in their earlier working life that exposed them to old-age financial insecurity. Prior work has discovered one outcome, saving regret, or people expressed wish that they had saved more earlier in life. In order to bridge the knowledge gap, the present research intends to examine the impact of anticipated regret on retirement planning behaviour to make extra voluntary retirement savings. The study is cross sectional in nature with a sample of 600 Nigerian workers from three geopolitical zone. Using smart PLS, the result obtained show that retirement planning intention has a significant positive impact on retirement planning behavior of the workers. Similarly, attitude towards financial planning and financial planning control has a significant positive impact on retirement planning intention of the workers. However, social influence has no significant impact on retirement planning intention. On the other hand, anticipated regret has a significant positive impact on attitude towards financial planning, retirement planning intention and social influence. Thus, anticipated regret plays a significant role in influencing attitude, social perception and financial perception and control on the formation of intention and retirement planning behavior. Practical Implications of the study revealed a significant correlation between psychological factors and retirement planning behavior of the workers. Most importantly, anticipated regrets were consistent with other factors.