IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i1p1058-1071.html
   My bibliography  Save this article

The Effects of Financial Literacy Programs on Retirement Planning and Preparedness among Middle-Aged Adults in Oyo State

Author

Listed:
  • Oge Augustine Sunday

    (Bamidele Olumilua University of Education, Science and Technology,Ikere Ekiti (Bouesti), Department of Management Science)

Abstract

This research study investigates the effects of financial literacy programs on retirement planning and preparedness among middle-aged adults in Oyo State. The study aims to determine the relationship between financial literacy and retirement planning and preparation among middle-aged adult teachers in Oyo State secondary schools, with a specific focus on male and female teachers. A descriptive survey research design is employed to observe and describe the behavior of the population without manipulation. The study sample consists of 1,125 public secondary school teachers, including 417 males and 708 females, selected through a multi-stage sampling approach. Data collection is done using a self-designed research instrument called the Financial Literacy and Retirement Planning Behavior (FLRPB) Scale. The FLRPB Scale demonstrates high internal consistency reliability with a Cronbach Alpha coefficient of 0.89. simple percentage for research questions, linear regression and univariate regression respectively use to test hypotheses one and two. The Oyo State study indicates a positive impact of financial literacy programs on middle-aged adults’ retirement planning, with 75% reporting increased knowledge and understanding and 60% enhanced confidence. Factors influencing participation include convenient schedules, relevant topics, accessible locations, and program effectiveness (65% agreement). Hypothesis testing confirms a significant association between financial literacy participation and retirement planning, explaining 66.1% of the variance. The study also highlights a moderating effect, suggesting that financial literacy participation influences the impact of gender on retirement planning. The adjusted R-squared value of 18.4% underscores the combined effects of gender and financial literacy, emphasizing the impactful role of financial literacy in shaping retirement readiness among middle-aged adults in Oyo State. It was concluded that The findings stress the importance of tailored financial education initiatives for empowering middle-aged adults and highlight the need for gender-specific considerations in program design for enhanced inclusivity and effectiveness. The research outcomes will have implications for policymakers, educators, and financial institutions in designing effective financial literacy programs tailored to the needs of middle-aged adults. The research also establishes a foundation for future studies in this field and underscores the significance of financial education in promoting financial well-being during the middle-aged adult stage of life.

Suggested Citation

  • Oge Augustine Sunday, 2024. "The Effects of Financial Literacy Programs on Retirement Planning and Preparedness among Middle-Aged Adults in Oyo State," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 1058-1071, January.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:1:p:1058-1071
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-1/1058-1071.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/the-effects-of-financial-literacy-programs-on-retirement-planning-and-preparedness-among-middle-aged-adults-in-oyo-state/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy and retirement planning in the United States," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 509-525, October.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    3. Justine S. Hastings & Brigitte C. Madrian & William L. Skimmyhorn, 2013. "Financial Literacy, Financial Education, and Economic Outcomes," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 347-373, May.
    4. Chen, Haiyang & Volpe, Ronald P., 1998. "An Analysis of Personal Financial Literacy Among College Students," Financial Services Review, Elsevier, vol. 7(2), pages 107-128.
    5. Neha Garg & Shveta Singh, 2018. "Financial literacy among youth," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(1), pages 173-186, January.
    6. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy around the world: an overview," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 497-508, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tabea Bucher-Koenen & Annamaria Lusardi & Rob Alessie & Maarten van Rooij, 2017. "How Financially Literate Are Women? An Overview and New Insights," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 255-283, July.
    2. Azra Zaimovic & Anes Torlakovic & Almira Arnaut-Berilo & Tarik Zaimovic & Lejla Dedovic & Minela Nuhic Meskovic, 2023. "Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends," Sustainability, MDPI, vol. 15(12), pages 1-30, June.
    3. Pallavi Dogra & Arun Kaushal & Rishi Raj Sharma, 2023. "Antecedents of the Youngster’s Awareness About Financial Literacy: A Structure Equation Modelling Approach," Vision, , vol. 27(1), pages 48-62, February.
    4. Beata Świecka & Paweł Terefenko & Tomasz Wiśniewski & Jingjian Xiao, 2021. "Consumer Financial Knowledge and Cashless Payment Behavior for Sustainable Development in Poland," Sustainability, MDPI, vol. 13(11), pages 1-18, June.
    5. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    6. Tracey West & Michelle Cull, 2020. "Future Expectations and Financial Satisfaction," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 318-335, December.
    7. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.
    8. Paul Gerrans & Richard Heaney, 2019. "The impact of undergraduate personal finance education on individual financial literacy, attitudes and intentions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(1), pages 177-217, March.
    9. Elinder, Mikael & Hagen, Johannes & Nordin, Mattias & Säve-Söderbergh, Jenny, 2020. "Who lacks pension knowledge, why and does it matter?," Working Paper Series 2020:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Godiva Rembeci, 2019. "Building an information system to enhance innovative SMEs in Albania," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 5, ejes_v5_i.
    11. F. Douglas Foster & Juliana Ng & Marvin Wee, 2015. "Presentation Format and Financial Literacy: Accessibility and Assessability of Retirement Savings Statements," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 519-549, November.
    12. Margherita Fort & Francesco Manaresi & Serena Trucchi, 2016. "Adult financial literacy and households’ financial assets: the role of bank information policies," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 743-782.
    13. Anderson, Anders & Baker, Forest & Robinson, David T., 2017. "Precautionary savings, retirement planning and misperceptions of financial literacy," Journal of Financial Economics, Elsevier, vol. 126(2), pages 383-398.
    14. Arceo-Gómez, Eva O. & Villagómez, F. Alejandro, 2017. "Financial literacy among Mexican high school teenagers," International Review of Economics Education, Elsevier, vol. 24(C), pages 1-17.
    15. Kiliyanni, Abdul Latheef & Sivaraman, Sunitha, 2016. "The perception-reality gap in financial literacy: Evidence from the most literate state in India," International Review of Economics Education, Elsevier, vol. 23(C), pages 47-64.
    16. Beata Swiecka & Eser Yeşildağ & Ercan Özen & Simon Grima, 2020. "Financial Literacy: The Case of Poland," Sustainability, MDPI, vol. 12(2), pages 1-17, January.
    17. Li, Xiao, 2020. "When financial literacy meets textual analysis: A conceptual review," Journal of Behavioral and Experimental Finance, Elsevier, vol. 28(C).
    18. Fang Zhao & Jie Sun & Raj Devasagayam & Gary Clendenen, 2018. "Effects of culture and financial literacy among Chinese-Americans on participating in financial services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(1), pages 62-75, March.
    19. Margaret Miller & Julia Reichelstein & Christian Salas & Bilal Zia, 2015. "Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature," The World Bank Research Observer, World Bank, vol. 30(2), pages 220-246.
    20. Bose, Udichibarna & MacDonald, Ronald & Tsoukas, Serafeim, 2015. "Education and the local equity bias around the world," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 39(C), pages 65-88.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:1:p:1058-1071. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.