GATR Journal of Finance and Banking Review Financial Literacy and Retirement Planning of Working-Age People (original) (raw)
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Financial Literacy and Retirement Planning; Based On Wewala West GN Division, Sri Lanka
IPRC Full, 2018
In present society several severe troubles which arise due to the lack of financial literacy and specially issues regarding retirement life confidence are observed. A very few out of the Sri Lankan population have retirement plans while a majority have a blank idea about it. Several factors can be identified which determine this difference of numbers. According to the previous studies in many countries, financial literacy rate is a considerable factor among other factors which decide whether an individual has a retirement plan or not. Research problem of this study is to check whether financial literacy rate is a significant factor which determines owning a retirement plan in the Sri Lankan context. In addition, specific objectives of this study are constructing indices for financial literacy and retirement life confidence, identifying the basic demographic factors affecting the financial literacy and retirement life confidence. A sample of 300 households from Wewala West GN division of Colombo District is selected for this research using simple random sampling technique. Structured questionnaire was used to gather data which contained basically 3 parts. Indices for financial literacy rate and retirement life confidence are constructed using weighted average method. With the use of these index values, people are categorized into two categories as high and low using the median value of each index. It was identified some factors including education level and age have a significant impact on the financial literacy rate but the race does not have a significantly effect. As well as there are some factors including monthly income, education level and ownership of the house which are significantly effect to retirement life confidence while gender, marital status, race, number of dependents and sector of job does not have a significant effect on retirement life confidence. Finally, it can be concluded that if someone has good financial literacy rate, such respondents tend to choose a retirement plan. Thus there is a relationship between financial literacy rate and having a retirement planning.
International Journal of Management (IJM), 2020
This study is to analyze the level of financial literacy and retirement preparation on lecturers and administrative staffs at the Universitas Indonesia and analyze the effect of financial literacy on retirement planning. This study uses a simple linear regression. The study was conducted on 120 respondents consist of lecturers and administrative staffs at the Universitas Indonesia. The results of this study are the level of financial literacy in respondents is less literate and the level of retirement preparation at the medium level. So it was found there was an influence of financial literacy on retirement planning on lecturers and administrative staffs in Universitas Indonesia
Financial literacy and personal retirement planning: a socioeconomic approach
Journal of Business and Socio-economic Development
PurposeThe purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC), which is a Sub-Saharan underdeveloped country with a weak pension and social security system.Design/methodology/approachThis study used a structural equation modeling and a sample of 361 public sector employees selected in Bukavu city in the DRC. The data were collected through a survey questionnaire, and the data were analyzed using SPSS and SMART PLS software.FindingsThe results from the study revealed that financial literacy has a significant impact on personal retirement planning. Two constructs of financial literacy, respectively, computation capability and financial knowledge were found to have a significant impact on personal retirement planning, while financial education and attitudes toward financial products were found not significant in explaining personal retirement planning.Practical implicatio...
Proceedings of the Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia, 2019
This study aims to determine (1) the level of financial literacy and the ability to manage the lecturers' finance at the Faculty of Economics and Business UMSU (2) to determine the effect of financial literacy and the ability to manage the lecturers at the UMSU Faculty of Economics and Business on retirement preparation. This research is quantitative descriptive, and this type of research is explanatory research. The study population was 94 permanent lecturers who taught at the Faculty of Economics and Business UMSU. The sample of this study was a saturated sample which was all members of the population into the study sample. The data analysis technique was used Structural Equation Modelling (SEM) analysis with the help of AMOS software. The results showed (1) the level of financial literacy of lecturers was still very low (low level), the majority of which was dominated by female lecturers (2) financial literacy influences financial behaviour with a positive relationship direction (3) financial literacy influences retirement preparation with the direction of the negative relationship (4) the ability to manage finances influences retirement preparation with the direction of a positive relationship (5) financial literacy influences retirement preparation through the ability to manage finances.
ANALYSING THE IMPACT OF FINANCIAL LITERACY ON RETIREMENT PLANNING: A PRE-RETIREMENT
This is due to the fact that, in recent years, financial literacy has come to be recognized as an essential skill that leads to positive perspectives on one's financial situation. The employees of participated in this study to investigate the relationship between financial literacy and retirement planning. Since the purpose of the study was to investigate the connection between financial literacy and retirement planning, a quantitative method was selected as the appropriate method for conducting the research. The data collection instrument was in the form of a structured questionnaire that was completed by the participants themselves. According to the findings of the study, having a strong understanding of personal finance has a large and favourable impact on being prepared for retirement. The recommendations were based on the necessity for employers to increase the number of publications on financial education at the University Library. In addition, the results of this research suggest that a national policy on financial literacy as soon as possible in order to teach people when they are still in the formative stages of their lives.
Financial Literacy on Retirement Planning of Workers of University of Mines and Technology, Tarkwa
2020
Many studies conducted around the world emphasize the importance of financial literacy in this modern dispensation since in recent years financial literacy has been recognized as a key skill that leads to healthy financial attitudes. This study examines the effect of financial literacy on retirement planning using the workers in UMaT as a study. A total of 203 respondents were used for the study. The respondents were quizzed on their knowledge in general finance, savings and borrowing, insurance, investment and with some information on their retirement decisions and demographic factors. A quantitative approach was adopted for the study since it examines the relationship between financial literacy on retirement planning with a structured self-administered questionnaire as a mean for data. The study identified that financial literacy has a significant positive influence on retirement preparedness. The study documented recommendations from staffs on the need for employers to increase the amount of publications on financial education at the University Library and also organize financial literacy programs which will improve workers financial knowledge in order to help in their retirement planning. Further, based on the findings of this study, a national policy on financial literacy is urgently needed in Ghanaian education system to educate people at the early stages of their lives.
Financial Literacy Key to Retirement Planning in Malaysia
Journal of Management and …, 2012
This paper examined the influence of financial learning on retirees' retirement financial planning preparation. 750 questionnaires were distributed with a 53.9% return rate. Three hypotheses were analysed using hierarchical regression analysis. The results revealed that some mediating effect existed between financial learning and behavioural assessment of personal finance, and that the older age groups had mediating effect on the relationship between financial learning and subjective perception of satisfaction with personal finance. Within this context, respondents were satisfied with their financial situation from the behavioural assessment of personal finances, subjective perception and perceived financial well-being perspective. The study also indicated that some mediating effect existed between financial learning and behavioural assessment of personal finance, and that the older age groups (above 50 years) had mediating effect on the relationship between financial learning and subjective perception of satisfaction with personal finance.
Financial literacy and financial planning: Implication for financial well-being of retirees
Business and Economic Horizons, 2017
This study examines how financial literacy, financial behaviour, family support (as another source of income), number of dependents, and retirement planning influence on the financial well-being of retirees in Cape Coast Metropolis of Ghana. A cross-sectional survey strategy was employed on 400 respondents randomly selected from 1500 members of the association to analyze the effect of financial literacy, financial behaviour, family support, number of dependents and retirement planning on financial wellbeing. It then tests their hypothesized relationships with the use of Partial Least Squares (PLS), a structural equation modelling technique. The results reveal that financial literacy, retirement planning and family support significantly impact the financial well-being of retirees. More importantly, the effect of family support and retirement planning on retirees' financial well-being is stronger than the one of financial literacy. The findings imply that finance literacy and retirement planning should be promoted. In addition to policies aimed at bridging social cohesion and promoting family values should not be ignored the maximizing of financial well-being of retirees. The study contributes to the extant literature on financial literacy and provides evidence on the effect of financial literacy and financial planning on the financial well-being of retirees in a developing country. It has also provided support for the need of social cohesion.
The Effect of Financial Literacy and Financial Inclusion on Retirement Planning
Asia Pacific Management and Business Application
This study aims to determine the effect of financial literacy and financial inclusion on retirement planning. Used a quantitative method with 236 respondents in Indonesia and processed by the method of multiple linear regression analysis. The results of the study show that financial literacy and financial inclusion have a significant effect on retirement planning, which means that the higher financial literacy and financial inclusion of a person, the better their retirement planning. Besides, the results of the study showed that respondents were dominated by moderate financial literacy, moderate financial inclusion levels, and high retirement planning levels.
Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education
Business Economics, 2007
Economists are beginning to investigate the causes and consequences of financial illiteracy to better understand why retirement planning is lacking and why so many households arrive close to retirement with little or no wealth. Our review reveals that many households are unfamiliar with even the most basic economic concepts needed to make saving and investment decisions. Such financial illiteracy is widespread: the young and older people in the United States and other countries appear woefully under-informed about basic financial concepts, with serious implications for saving, retirement planning, mortgages, and other decisions. In response, governments and several nonprofit organizations have undertaken initiatives to enhance financial literacy. The experience of other countries, including a saving campaign in Japan as well as the Swedish pension privatization program, offers insights into possible roles for financial literacy and saving programs.