Financial literacy and financial planning: Implication for financial well-being of retirees

• Authors: Adam Anokye M. , Frimpong Siaw , Boadu Mavis Opoku
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

Financial literacy; financial behaviour; family support; Ghana

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Prague Development Center, Czech Republic
• Journal: Business and Economic Horizons
• Year: 2017
• Volume: Volume 13
• Issue: Issue 2
• Pages: 224-236

Dates

published

2017-07-20

Contributors

author

Adam Anokye M.

• School of Business, University of Cape Coast, Ghana

author

Frimpong Siaw

• School of Business, University of Cape Coast, Ghana

author

Boadu Mavis Opoku

• School of Business, University of Cape Coast, Ghana

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