Risk Tolerance as A Moderation of Financial Literacy and Lifestyle on Old Age Financial Planning of Civil Servant in The Environment of The Mataram University Rectorate

ABSTRACT:Old age financial planning must consider various factors, such as retirement age, estimated monthly expenses in retirement, life expectancy, current and projected income until retirement which determines the ability to save, assets and investments already owned, and the impact of inflation on future purchasing power. Future, as well as the level of investment return. This research is causal associative research, this research uses a quantitative approach. The population used in this research were employees within the Rectorate of the University of Mataram, 67 Civil Servants. The saturated sampling method or total sampling is a sampling technique in which all members of the population are used as samples. In this questionnaire, respondents’ answers were measured using a 6-point Likert scale: with ratings of 1 (strongly disagree), 2 (disagree), 3 (somewhat disagree), 4 (somewhat agree), 5 (agree), 6 (strongly agree). The Partial Least Square-Structural Equation Model (PLS-SEM) with smart PLS 3.0 software was used to analyze the research data. The study’s findings indicate that financial literacy is found to have a positive and significant impact on old-age financial planning among Rectorate employees at the University of Mataram. This indicates that as financial literacy levels increase, so do activities relate to planning for retirement. Conversely, lifestyle does not exhibit a significant influence on old-age financial planning for these employees. Furthermore, the interaction between financial literacy and risk tolerance weakens the effect of financial literacy on retirement financial planning, implying that higher risk tolerance diminishes the impact of financial literacy on planning for retirement. However, risk tolerance does not moderate the influence of lifestyle on old-age financial planning, indicating that the interaction between lifestyle and risk tolerance does not significantly affect retirement financial planning for Rectorate employees at Mataram University.

KEYWORDS :Risk Tolerance, Financial Literacy, Lifestyle, Old Age Financial Planning