The life expectancy rate of individuals worldwide has risen, and Saudi Arabia is not excluded. Rising long-life expectancy may jeopardize employees’ pensions and reduce the chances of adequate earnings and a decent life after retirement. Moreover, the number of employees, who have paid into pension funds and are now retired, has increased, indicating that pension funds are expected to decrease. Apart from the above, the level of financial literacy in Saudi Arabia was substandard. Therefore, the ultimate objective of this research is to examine the measurable factors that could impact employees in their financial planning for retirement (FPR). These factors comprise the employee’s financial literacy (FL), financial risk tolerance (FRT), and cultural factors based on the CWO model. Moreover, this study aims to investigate the mediating roles of culture in their relationship with financial planning for retirement. Primary data was collected during the COVID-19 pandemic from mid-July 2020 until the end of January 2021 using a non-probability convenience sampling approach involving 525 participants. The Structural Equation Modelling (SEM) technique was used to analyze the data. To determine the type of study variables, either a formative or reflective model of Confirmatory Tetrad Analysis (CTA-PLS) was used. The results show the significant influence of basic FL, FRT, and culture on FPR. Moreover, it shows the critical role of culture among those with advanced FL and FRT. Previous studies have examined FL and FRT in FPR without considering the effect of culture as a mediator.

The objective of this study is to examine the role of financial self-efficacy (FSE), retirement goal clarity (RGC), and government policy (GP) on financial planning for the retirement (FPR) behavior of public university employees based on the CWO model for retirement. Also, to examine the moderating role of GP on the relationship between FSE, RGC, and FPR. Primary data was gathered during the COVID-19 pandemic from mid-July 2020 until the end of January 2021 using a non-probability convenience sampling approach involving 525 respondents. The data were analyzed using the Structural Equation Modelling (SEM) technique. The Confirmatory Tetrad Analysis method (CTA-PLS) is used to determine the formative/reflective type of study variables. The results directly show the significant impact of the FSE, RGC, and GP on FPR. Indirectly, for those with a clear retirement goal, the perceived GP moderates its relationship with FPR. Previous research has examined FSE and RGC in FPR without considering the effect of GP.