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

Business and Economic Horizons Pub Date : 2017-01-01 DOI:10.15208/BEH.2017.17

A. Adam, S. Frimpong, M. Boadu

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引用次数: 48

Abstract

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.

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财务知识和财务规划:对退休人员财务福利的影响

本研究考察了财务知识、财务行为、家庭支持(作为另一种收入来源)、受抚养人数量和退休计划如何影响加纳海岸角大都会退休人员的财务状况。采用横断面调查策略，从协会的1500名成员中随机抽取400名受访者，分析财务素养、财务行为、家庭支持、受抚养人数量和退休计划对财务健康的影响。然后用偏最小二乘(PLS)，一种结构方程建模技术来测试他们假设的关系。结果显示，财务知识、退休计划和家庭支持对退休人员的财务福祉有显著影响。更重要的是，家庭支持和退休计划对退休人员财务幸福感的影响强于财务素养的影响。研究结果表明，应提高金融知识和退休计划。除了旨在弥合社会凝聚力和促进家庭价值的政策之外，不应忽视最大限度地提高退休人员的财务福利。本研究对现有的财务知识文献进行了补充，并提供了有关财务知识和财务规划对发展中国家退休人员财务福利影响的证据。它还为社会凝聚力的需要提供了支持。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Business and Economic Horizons ECONOMICS-

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期刊介绍： The Business and Economic Horizons (BEH) is an international peer-reviewed journal that publishes high quality theoretical, empirical, and review papers covering the broad spectrum of research in areas of economics, business, management, and finance. The journal aim is to bridge the gap between the theory and the observed data in these constantly developing domains. BEH Editorial Board welcomes the high-quality original research articles and review papers that verify the well-grounded and the emerging theories by employing the econometric, statistical methods or other relevant empirical methods in theoretical and applied economic analysis. BEH does not discriminate articles utilizing the non-mainstream approaches such as experimental research, institutional analysis, other variations of heterodox and developmental economic studies. Therefore, the submissions in any field of micro- and macroeconomics, business ethics, economic policy or finance are appropriate for this journal. We hope, the provided contributions will help to understand the contemporary challenges faced by the private and public sector and will establish an international forum of empirical research.