The Influence of Financial Literacy on Retirement Planning in South Africa

Abstract

Background: A shift in the retirement planning and pensions landscape has created an enormous responsibility for individuals to plan for their retirement provision actively. Very few South Africans reach the average retirement age of 65 years with sufficient funds to sustain themselves during their retirement. Purpose/objective: Using secondary data from the 2011 South African Social Attitudes Survey (SASAS), this study aims to examine the influence financial literacy has on the retirement planning of South Africans. The secondary aim of the study was to investigate the financial literacy and retirement planning behaviour of certain demographic groups: gender, age, race, education, and income levels. Design/methodology: Binomial logistic regression is used to establish if financial literacy influences planning for retirement. Findings: The results show that financial literacy significantly influences retirement planning. Furthermore, only 24% of South Africans actively plan for retirement and financial literacy was particularly low among women, less educated individuals and Black African people. Research limitations: Firstly, the study relies on self-reported measures. Secondly, the binomial logistic regression analysis only indicates the likelihood of an individual planning for retirement based on their financial literacy score. Originality/value: This study contributes to retirement planning literature as it is one of the few studies that explore retirement planning and financial literacy in the context of a developing country using a geographic, nationally representative sample.

Factors Influencing Professional Skills Among Accounting Students at KwaZulu-Natal Universities.

“…Studies in several nations have indicated that college students lack professional skills (Mvunabandi et al, 2023). These findings align with those regarding financial literacy in South Africa (Dhlembeu et al, 2022). Kobina, Yensu, and Obeng (2020) found that all age groups exhibited low financial capability and professional competence levels.…”

“…The skills framework was described as "a high-level description of the skills that an accounting professional should have when entering the profession (i.e., completion of the required training and training programs and the final evaluation)" in SAICA's initial competency framework document (Asonitou & Hassall, 2019). These abilities encompass professional and technical skills (Dhlembeu et al, 2022).…”

Pengaruh Pendapatan, Perspektif Waktu Masa Depan, Dan Literasi Keuangan Terhadap Perencanaan Pensiun Guru SMK Swasta Di Surakarta

“…Hal tersebut dapat disebabkan oleh kurangnya pemahaman tentang pengetahuan keuangan dan kemampuan seseorang dalam mengelola keuangan. Sependapat dengan hasil penelitian dari Kalmi & Ruuskanen (2018) dan Dhlembeu, Mvita, and Kekana (2022) yang menyebutkan bahwa literasi keuangan berpengaruh signifikan terhadap perencanaan pensiun. Hasil penjelasan diatas memberikan kesimpulan hipotesis berupa: H3:…”

“…<0,05 sehingga H3 diterima. Hal ini sejalan dengan penelitian Dhlembeu et al (2022) yang menyebutkan bahwa literasi keuangan berpengaruh positif dan signifikan terhadap perencanaan pensiun. Misalnya, literasi keuangan yang penting untuk perencanaan dana pensiun adalah pengetahuan tentang bagaimana pendapatan dialokasikan atau disisihkan untuk perencanaan dan masa pensiun.…”

FINANCIAL LITERACY & FINANCIAL PLANNING FOR RETIREMENT IN PAKISTAN: CASE OF ACADEMICIANS IN PUBLIC UNIVERSITIES OF KP

“…The association between financial literacy and financial planning for retirement has been subject of numerous studies (Selvadurai, et al, 2018;Antoni, et al, 2020;Graber, 2020;Dhlembeu, et al, 2022), but there are still gaps that need to be filled. Although, there has been little research on financial literacy but nothing is done on the financial literacy influences financial planning for retirement in Pakistan, despite the life cycle theory assertion that it is essential.…”