THE IMPACT OF BEHAVIORAL BIASES ON PENSION FUND MANAGEMENT

Abstract

This study investigates the impact of behavioral biases on Pension Fund Management (PFM), focusing on key dimensions such as self-control bias, perceived knowledge, retirement goal clarity, future time perspective and attitude toward retirement. Utilizing a descriptive and causal-comparative research design, data were collected from 250 respondents through structured self-administered questionnaires. The demographic profiles of respondents, including gender, age, educational qualifications, occupation, income, and familiarity with retirement planning concepts, were also analyzed. Statistical analysis, performed using SPSS Version 29 and Microsoft Excel, included descriptive statistics, correlation, and regression analysis to examine the relationships and impacts of behavioral biases on PFM. The findings reveal positive correlations between all behavioral biases and PFM. Regression analysis confirms that all independent variables significantly influence PFM at the 5% significance level. Future time perspective exhibits the strongest impact, emphasizing the importance of promoting long-term financial thinking. Self-control bias highlights the need for financial behavior training, while perceived knowledge underlines the role of financial awareness. Retirement goal clarity and attitude toward retirement further stress the importance of planning workshops and awareness campaigns. These results underscore the necessity of behavioral and cognitive interventions to enhance pension fund management.