Enhancing Pension Participation in the Digital Economy: Financial Literacy, Fintech Adoption, and Behavioral Drivers Among Young Employees in Indonesia

Read full text
Authors: Sutanto Harry
Cited by: 0

Abstract

Low pension participation and long-term investment engagement among young individuals in Indonesia remain a structural challenge despite rapid growth in the digital financial ecosystem. Although FinTech platforms and digital pension products are increasingly accessible, participation among the digitally native generation remains limited. This study integrates prior findings on pension participation and investment intentions to examine how financial literacy and FinTech jointly influence investment and retirement planning intentions. Financial literacy represents a cognitive capability that enables individuals to evaluate financial information and risk–return trade-offs, while FinTech serves as a technological enabler that enhances accessibility, efficiency, and user engagement. However, digital access alone is insufficient without adequate financial understanding and behavioral readiness. Grounded in behavioral finance and digital adoption theories, this study proposes a model linking financial literacy, FinTech adoption, trust, risk perception, and future time perspective to participation intentions. Empirical evidence from young employees aged 20–40 years shows that financial literacy has significant direct and indirect effects, particularly through FinTech adoption. Trust and future time perspective strengthen this relationship, whereas high risk perception weakens it..

Fields of Study & Subjects

Financial Literacy Pension Retirement Analysis Financial Literacy and Behavior FinTech Crowdfunding Digital Finance

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
17 January 2026
Document type
Dataset