MILLENNIAL BREAKTHROUGH: THE EAGER TO LIVE A PROSPEROUS FUTURE

Abstract

The participation of pension funds in Indonesia can be categorized as low which is only 5.48 percent from around 80 million workers, while it also decreased by 5.34 percent from 2018. The average financial literacy index in Indonesia 29.7 percent while the financial literacy in the pension funds sector is just 10.9 percent. Considering that the financial literacy index of pension is still low, awareness regarding retirement planning needs to be developed especially for the younger generation. College students become the strategic target as they have not worked yet and still have enough time to enrich their knowledge regarding retirement planning. Further, the younger generation will also dominate this country's population in 2030-2040. The objective of this research is to define the factors that significantly affect college student’s intention to invest in a pension fund. By using logistic regression, this research confirmed that Attitude, Perceived Behavioural Control, and Money Management are the factors that significantly influenced college students’ intention to invest in a pension fund. Overall, the study can be used by the government to stimulate social awareness towards retirement planning through pension funds.