Digital financial literacy and retirement planning behaviour among Indian millennials: a PLS-SEM study based on the capacity–willingness–opportunity framework

Abstract This study explores how digital financial literacy is linked to retirement planning behaviour among Indian millennials, with particular attention to the role of willingness to plan as a motivational pathway. Drawing on the Capacity–Willingness–Opportunity framework, the analysis considers retirement preparation as a process shaped not only by digital capability but also by individuals’ readiness to engage in planning activities. The study is situated in a context marked by rapid digitalisation and continued concerns around retirement preparedness. Survey data were obtained from 307 digitally active Indian millennials based in Chandigarh and analysed using partial least squares structural equation modelling with SmartPLS version 4. Measurement quality was assessed using standard reliability and validity criteria, and mediation was examined through bootstrapped indirect effects. The findings indicate that individuals with stronger digital financial literacy are more likely to demonstrate both greater willingness to plan and more active retirement planning behaviour. Willingness to plan accounts for part of this relationship, suggesting that digital skills influence behaviour not only directly but also by shaping planning motivation. The results carry practical relevance for policymakers, employers, and financial technology providers concerned with improving retirement preparedness. They indicate that efforts focused solely on improving digital financial knowledge may be insufficient unless accompanied by simple motivational supports, such as goal-setting cues or default contribution features that encourage sustained engagement. Overall, the study contributes evidence that digital capability and motivational readiness jointly shape retirement planning behaviour among Indian millennials.