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

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  • Adam, Anokye Mohammed
  • Frimpong, Siaw
  • Boadu, Mavis Opoku

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.

Suggested Citation

  • Adam, Anokye Mohammed & Frimpong, Siaw & Boadu, Mavis Opoku, 2017. "Financial literacy and financial planning: Implication for financial well-being of retirees," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(2).
    • Handle: RePEc:ags:pdcbeh:264696
    DOI: 10.22004/ag.econ.264696
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    References listed on IDEAS

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    3. Shobha T.S & P. Amrutha, 2021. "An Exploratory Study on the Factors Affecting Retirement Planning among Working Women in the City of Bengaluru," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 12(1), pages 01-09, January.
    4. Samuel K. Agyei & Anokye M. Adam & Otuo S. Agyemang, 2019. "Financial Literacy, Cultural Dominance, and Financial Well‐Being of SME Owners in Ghana," Poverty & Public Policy, John Wiley & Sons, vol. 11(3), pages 222-237, September.
    5. Liu, Liu & Zhang, Hua, 2021. "Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).

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