The Causal Relationship Model of Financial Preparedness for Retirement Among Generation Y Employees in a Cosmetic Manufacturing Factory in Thailand
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Abstract
The objective of this study was to investigate the Causal Relationship Model of Financial Preparedness for Retirement among Generation Y employees in cosmetic manufacturing factories in Thailand. The target group consisted of 420 employees (aged 25–42, representing Generation Y) working in GMP-certified cosmetic factories located in the central region of Thailand, specifically in Bangkok, Ayutthaya, and Samut Prakan, selected using Purposive Sampling to align with the research context. The findings revealed that Financial Literacy positively influences Financial Behavior, Retirement Savings Capacity, and Financial Preparedness. Similarly, both Financial Behavior and Financial Preparedness positively influence Retirement Savings Capacity, with all relationships being statistically significant. The research concludes that Financial Literacy is the fundamental driver of successful retirement planning in this workforce. Consequently, organizations are advised to invest in Proactive Financial Education programs that focus on practical application, such as managing high-cost debt and maximizing corporate retirement benefits. Furthermore, companies should implement internal mechanisms to facilitate automatic savings deductions directly from supplementary income (e.g., overtime or bonuses) to instill disciplined retirement savings habits despite volatile incomes. Relevant government agencies and financial institutions should also develop user-friendly FinTech tools and applications tailored to the fluctuating income patterns of industrial workers, aiding in expenditure tracking and appropriate retirement investment. Policy recommendations include considering additional tax incentives for savings directed at the manufacturing workforce to help reduce current debt burdens and increase the rate of accumulation in retirement schemes.
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