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Aging and Financial Literacy: The Interplay of Informal Counselling, Risk Aversion, and Empowerment
Amjad Islam Amjad1, Seema Irshad2
1Department of Education, The University of Lahore, Lahore, Pakistan.
International Journal of Aging & Human Development
|July 27, 2026
Summary
Informal financial counselling significantly boosts retirees' financial planning. Psychological empowerment acts as a key mediator, while risk aversion plays a lesser role in this crucial post-retirement phase.
Area of Science:
- Social Sciences
- Psychology
- Economics
Background:
- Financial planning (FP) presents a significant challenge for retirees.
- Existing research indicates a gap in understanding the interplay of informal financial counselling (IFC), psychological empowerment, and risk aversion in post-retirement FP.
Purpose of the Study:
- To investigate the role of IFC in retirees' FP.
- To examine psychological empowerment as a mediator in the IFC-FP relationship.
- To assess risk aversion as a moderator in the IFC-FP relationship.
Main Methods:
- Cross-sectional survey design.
- Data collected from 490 government retirees in Punjab, Pakistan.
- Statistical analysis to determine relationships and mediation/moderation effects.
Main Results:
- Informal financial counselling (IFC) significantly contributes to retirees' financial planning (FP).
- Psychological empowerment significantly mediates the relationship between IFC and FP.
- Risk aversion shows a positive influence on FP but does not significantly moderate the IFC-FP relationship.
Conclusions:
- Informal financial counselling is crucial for enhancing retirees' financial preparedness.
- Empowering retirees psychologically is vital for effective financial decision-making.
- Interventions like workshops and accessible counselling programs are recommended to improve post-retirement financial planning.
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