Factors influencing early retirement intentions: The moderating role of financial literacy - Evidence from Vietnam

Abstract

This study analyzes the factors influencing employees’ early retirement intentions, focusing on personal financial management, financial literacy, working conditions, and the impacts of the social environment. Based on the 760 collected survey responses, after removing invalid forms to ensure data reliability. The Partial Least Squares Structural Equation Modeling (PLS-SEM) method was employed to test the research hypotheses, along with K-clustering and multi-group analysis techniques to examine the moderating roles of various factors. The results indicate that personal financial effectiveness, family pressure, and a positive attitude toward early retirement significantly influence employees’ intentions to retire early. However, financial literacy does not strongly moderate early retirement intention, though it still affects several factors. Work-related pressure and social opinions appear to have little impact on retirement decisions. The study recommends measures such as enhancing financial education, improving working conditions, and developing appropriate retirement support programs to help employees better prepare financially before retirement.