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Digital finance and household retirement planning: Evidence from China

Author

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  • Pan, Xuefeng
  • Tian, Yuhao
  • Wu, Weixing

Abstract

Worldwide population aging intensifies the urgency of retirement planning. We examine how progress in financial technology reshapes household mindsets to guide their retirement planning decisions. Utilizing a survey of 40,916 households that records retirement-related mindsets and behaviors in China, we find that increases in digital financial inclusion, an established proxy for financial technology, power a mindset shift towards self-responsibility for providing for one’s retired life. This in turn increases the probability of retirement planning, especially the planning implemented through the means of savings. We further show that such effects are concentrated on the self-employed, likely due to their exposure to business risks and so their desire to build retirement income certainty through precautionary savings. We contribute by utilizing a mass experiment to identify mindset shifts as a channel through which financial technology improves retirement planning, besides the financial literacy channel and the credit channel often found.

Suggested Citation

  • Pan, Xuefeng & Tian, Yuhao & Wu, Weixing, 2025. "Digital finance and household retirement planning: Evidence from China," Research in International Business and Finance, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:riibaf:v:80:y:2025:i:c:s0275531925003721
    DOI: 10.1016/j.ribaf.2025.103116
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    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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