The development, validation, and application of a retirement preparation readiness scale in Taiwan

ABSTRACT

Retirement preparation is an issue of global concern. The public and private sectors have implemented solutions in the workplace such that participants turn their knowledge into actions through exploration. Yet, research is scarce regarding the associations between these three levels of knowledge, exploration, and implementation. This study aimed to develop a retirement preparation scale for middle-aged and older adult employees in Taiwan and examine the relations between the three levels. After each question indicator passed validity and reliability tests, the overall scale was subjected to initial validation of the measurement model using structural equation modeling. The key model indicators were analyzed using the best-fit model. The scale has an acceptable model fit with the collected data. There were 27 indicators covering 9 dimensions, and each indicator within the corresponding dimension had good reliability and validity. The results indicated that Taiwanese employees with relatively better knowledge of retirement planning are more aware of the importance of retirement preparation. However, the lack of significant employee engagement toward retirement preparation resulted in a lack of motivation to turn knowledge into implementation. Engagement in retirement preparation is a key determinant in individuals turning their knowledge into implementation. This study suggests that companies should help their employees explore retirement preparation options such that they can combine knowledge and involvement to improve retirement life quality.

Disclosure statement

No potential conflict of interest was reported by the author(s).