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Aishwarya Mitra1 and Keshav Kant Prasad2

First Published 24 Mar 2026. https://doi.org/10.1177/njb.261461364
Article Information Volume 9, Issue 1 March 2026
Corresponding Author:

Aishwarya Mitra, Institute of Management, Nirma University, Ahmedabad, Gujarat, India
Email: aishwarya.mitra@nirmauni.ac.in

1Institute of Management, Nirma University, Ahmedabad, Gujarat, India

2Department of Business Administration, School of Business, Amrita Vishwa Vidyapeetham, Kochi, Kerala, India

This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage).

Abstract

To attain the ability of retirement readiness and the morale for eventual security in later years, acquiring financial literacy (FL) is intrinsic, which further leads to financial well-being (FWB). In this context, the present study aims to examine the impact of FL on employees’ FWB via the interaction role of retirement planning behaviour (RPB) in the Indian IT sector. A cross-sectional quantitative research design approach was adopted, where an analysis of 352 employees collected through self-administered questionnaires was done using PLS-SEM. The findings highlight significant and positive impacts of FL on employees’ FWB, with significant partial mediation of RPB in the FL-FWB association, suggesting that FL has a vital influence on improving the efficiency of retirement perception, thereby posing as an anchor in FWB. Considering the prior available research, very few studies have explored these intricate relationships, and thus, this research would serve as an essential guide for both organisations and policymakers.

Keywords

Financial literacy, financial well-being, retirement planning behaviour, employees, structural equation modelling, empirical

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