Financial Literacy and Retirement Planning of Senior and Junior Staff of the University of Cape Coast

Abstract

The current state of the global economy has made financial literacy more important as without the right financial knowledge, one can make a wrong decision that can lead to a financial slump. The purpose of the study was to assess the level of financial literacy among the senior and junior staffs of the University of Cape Coast and its effects on their retirement planning. The study was grounded by the expectancy and the financial literacy theories. This study employed the descriptive research design and it was approached quantitatively. The convenience sampling technique was used to select 160 responses from the junior and senior staffs of the University of Cape Coast via questionnaire. The study used IBM SPSS v26 and SmartPLS v4.0 to process the valid and reliable data. The key findings are: there was a moderate level of financial literacy among staff of the University of Cape Coast. Subjective financial knowledge, financial awareness, and financial skills had a statistically positive and significant influence on retirement planning. However, financial behaviour had a statistically positive but insignificant influence on retirement planning. The study recommends that management of the University organize workshops, seminars and other avenues to educate their staffs on the importance of interest rates, financial matters (awareness creation) and the various investment vehicles available to them to serve as a supplement to their retirement income. The research also recommends that University employees should actively participate in financial planning in order to improve their financial literacy.