Financial Independence 101: A Blueprint for Early Retirement
Abstract
This study investigates the determinants of early retirement preparedness within the context of Bank Sulteng, focusing on the roles of income, expenses, and investments. Using a quantitative approach and Smart PLS analysis, data from a sample of 100 bank customers were analyzed to explore the direct and indirect effects of these variables on early retirement preparedness. The results indicate that income significantly influences both investment decisions and early retirement preparedness, highlighting its crucial role in shaping individuals' financial trajectories. Moreover, investments emerged as a significant determinant of early retirement preparedness, underscoring the importance of strategic investment planning. However, while expenses showed a direct significant impact on early retirement preparedness, their indirect effect through investments was not statistically significant. These findings provide valuable insights for individuals, financial institutions, and policymakers aiming to enhance financial literacy and promote effective retirement planning strategies.
References
[2] O. Kulakov, O. Popova, S. Popova, and E. Tomashevskaya, “Investments in green business and corporate governance by Ukraine’s cooperation with the European Union,” IOP Conf. Ser. Earth Environ. Sci., vol. 1126, no. 1, 2023, doi: 10.1088/1755-1315/1126/1/012011.
[3] D. Adirinarso, “ACCOUNTING OF FIXED ASSETS-ORIENTED INVESTMENTS AND ITS IMPROVEMENT,” Nucl. Phys., vol. 13, no. 1, pp. 104–116, 2023.
[4] A. Dutta, E. Bouri, T. Rothovius, and G. S. Uddin, “Climate risk and green investments: New evidence,” Energy, vol. 265, no. December 2022, p. 126376, 2023, doi: 10.1016/j.energy.2022.126376.
[5] D. Adirinarso, “IMPROVING THE ACCOUNTING OF FUNDS OF THE DIRECTOR’S FUND IN PUBLIC EDUCATIONAL INSTITUTIONS,” Nucl. Phys., vol. 13, no. 1, pp. 104–116, 2023.
[6] I. T. Index and P. Properties, “Biochemical Changes in the Liver After Covid-19 Disease in Alcohol-Dependent Patients and Their Effects on the Course of Alcoholism,” Peerian J., vol. 3, no. Mdd, pp. 18–29, 2022.
[7] L. C. Rankin et al., “Dietary tryptophan deficiency promotes gut RORγt+ Treg cells at the expense of Gata3+ Treg cells and alters commensal microbiota metabolism,” Cell Rep., vol. 42, no. 3, p. 112135, 2023, doi: 10.1016/j.celrep.2023.112135.
[8] A. Arman, M. Masrullah, A. Agustan, F. Firmansyah, and R. Aditya, “Financial Literacy and Assistance in Compiling Independent Financial Reports Using Expense IQ Money Manager,” Tech. Sustain., vol. 4, pp. 7–12, 2023, doi: 10.47577/sustainability.v4i.9476.
[9] Aldy Syafrizal, Rico Nur Ilham, Darmawati Muchtar, and Wardhiah, “Effect of Capital Adequacy Ratio, Non Performing Financing, Financing To Deposit Ratio, Operating Expenses and Operational Income on Profitability At Pt. Bank Aceh Syariah,” J. Account. Res. Util. Financ. Digit. Assets, vol. 1, no. 4, pp. 312–322, 2023, doi: 10.54443/jaruda.v1i4.51.
[10] R. Small et al., “Advancing progress on tobacco control in low-income and middle-income countries through economic analysis,” Tob. Control, vol. 33, pp. S3–S9, 2024, doi: 10.1136/tc-2023-058335.
[11] R. Glennerster and S. Jayachandran, “Think Globally, Act Globally: Opportunities to Mitigate Greenhouse Gas Emissions in Low- and Middle-Income Countries,” SSRN Electron. J., vol. 37, no. 3, pp. 111–136, 2023, doi: 10.2139/ssrn.4508093.
[12] H. Sutanto, I. Harsono, L. M. Furkan, B. S. W. Mulawiani, H. Fuady, and T. Yuniarti, “Income Inequality and Economic Growth,” Econ. Stud. Bank. J., vol. 1, no. 3, pp. 166–175, 2024, doi: 10.62207/6ec47y90.
[13] L. Chancel, D. Cogneau, A. Gethin, A. Myczkowski, and A. S. Robilliard, “Income inequality in Africa, 1990–2019: Measurement, patterns, determinants,” World Dev., vol. 163, p. 106162, 2023, doi: 10.1016/j.worlddev.2022.106162.
[14] J. L. Howard, “Guaranteed Basic Income from the Perspective of Self-Determination Theory,” J. Manag. Stud., 2024, doi: 10.1111/joms.13075.
[15] F. A. M. Tolondon and G. C. Ortizo, “Strategizing for the Future: A Mixed Method Approach to Department of Education Employees Retirement Readiness and Lifestyle Planning,” Int. J. Sci. Res. Manag., vol. 12, no. 04, pp. 3365–3379, 2024, doi: 10.18535/ijsrm/v12i04.el07.
[16] C. Ketkaew, M. Van Wouwe, A. Jorissen, and P. Vichitthamaros, “Demographic Analysis, Segmentation and Perceived Retirement Preparedness of Thai Wageworkers: A Quantitative Approach,” cetrefor Int. Manag., 2023.
[17] N. Nabil and J. Dwiridotjahjono, “Al-Kharaj : Jurnal Ekonomi , Keuangan & Bisnis Syariah Al-Kharaj : Jurnal Ekonomi , Keuangan & Bisnis Syariah,” Al-Kharaj J. Ekon. , Keuang. Bisnis Syariah, vol. 6, no. 2, pp. 2547–2562, 2024, doi: 10.47467/alkharaj.v6i5.2535.
[18] C. M. Munyaka, L. M. Kinyua, and J. Muriithi, “The Role of Human Resource Management in Employee Retirement Preparedness in Selected Private Schools in Nairobi County,” ShahidiHub Int. J. Business, Econ., vol. 1, no. 1, pp. 58–77, 2023.
[19] S. Education, “Demographic Predictors Of Retirement Preparedness Among University Academic Staff In,” Int. J. Innov. Psychol. Soc. Dev. 1, vol. 11, no. 4, pp. 129–137, 2023.
[20] Nur Illiya Shaira Ramli and Nurul Sima Mohamad Shariff, “A Study on Retirement Preparedness and Confidence among Private Sector Employees in Malaysia,” Malaysian J. Sci. Heal. Technol., vol. 9, no. 2, pp. 153–163, 2023, doi: 10.33102/mjosht.v9i2.328.
[21] M. E. Aizad, S. Ismail, and K. Abd Samad, “Measuring Financial Planning for Retirement of Gig Workers in Malaysia: A Pilot Study,” Inf. Manag. Bus. Rev., vol. 15, no. 3(I), pp. 325–340, 2023, doi: 10.22610/imbr.v15i3(i).3543.
[22] K. Doumbia, A NEW PATH TO FINANCIAL AUTONOMY : FinTech and the Indigenous Individual. 2020.
[23] A. O. A. TAIWO, “African Journal of Law and Human Rights (AJLHR) 7 (2) 2023 PATERNAL FEDERALISM: NIGERIAN FINANCIAL INTELLIGENCE UNIT AND LOCAL GOVERNMENT FINANCIAL AUTONOMY*,” African J. Law Hum. Rights, vol. 7, no. 2, pp. 99–107, 2023.
[24] R. Arsyadanie and R. A. Rahadi, “Financial Literacy and Retirement Readiness for Oil and Gas Indonesian Expatriates in Saudi Arabia,” Eur. J. Bus. Manag. Res., vol. 9, no. 1, pp. 6–14, 2024, doi: 10.24018/ejbmr.2024.9.1.2104.
[25] F. Komalasari and R. Zikri Mulyadi, “the Influence of Financial Literacy, Financial Attitude and Peer Influence Toward Retirement Saving Behavior Moderated By Gender: a Case in Indonesia,” J. Econ. Empower. Strateg., vol. 06, no. Vol 6 No 1, pp. 27–40, 2023, doi: 10.23969/jees.v6i1.6484.
Copyright (c) 2024 Clara Neltje Meini Rotinsulu, Muhammad Sani Kurniawan, Ananta Dian Pratiwi
![Creative Commons License](http://i.creativecommons.org/l/by-nc/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.