The Moderating Role of Money Attitudes in the Relationship Between Personality Traits and Early Pension Withdrawal

ABSTRACT This study examines how money attitudes moderate the relationship between personality traits and early pension withdrawal behaviour in the context of South Africa's new Two‐Pot retirement system. Drawing on structural equation modelling with data from over 5000 retirement fund members, whether Money Prudence and Money Anxiety condition the influence of Conscientiousness and Composure (inverse of Neuroticism) on withdrawal decisions is investigated. Results revealed that Money Prudence emerged as the strongest predictor of withdrawal behaviour ( β = −0.360, p < 0.001), exerting a substantial protective effect. Moderation analyses demonstrated that Money Prudence significantly altered personality–withdrawal relationships, though in unexpected ways. The protective effect of Conscientiousness weakened as Money Prudence increased ( β = −0.047, p = 0.012), suggesting diminishing marginal returns when strong planning behaviours are already ingrained. Conversely, Money Prudence amplified the positive association between Composure and withdrawal ( β = 0.071, p < 0.001), with more emotionally stable individuals showing higher withdrawal likelihood when also high in Money Prudence. Money Anxiety demonstrated a direct positive effect on withdrawal ( β = 0.097, p < 0.001) but did not moderate personality–behaviour relationships. These findings challenge conventional assumptions about the uniform influence of personality on financial decisions, demonstrating that domain‐specific money attitudes fundamentally reshape how personality traits translate into behaviour. The study provides empirical support for targeted behavioural interventions focused on strengthening Money Prudence.