Financial literacy and retirement planning of employees in Ghana Immigration Service

Abstract

The financial systems of the 21st Century have been growing with speed, sophistication and becoming more complex world over. Per this, the economic and social environment in which people take financial decisions has also changed drastically. This has increased individual employees’ responsibility in managing their own finances and securing their financial freedom. The study examined the relationship between financial literacy and retirement planning of employees in Ghana Immigration Service. The quantitative research design was employed. Stratified random sampling method was used to sample a total of 400 respondents. Data obtained from respondents were coded and analyzed with Statistical Product and Service Solutions (SPSS) version 21. Questionnaires were employed in the collection of data to address the research objectives. The data were personally collected by the researcher after explaining the purpose and assuring respondents of confidentiality. The study discovered high levels of financial literacy among employees of Ghana Immigration Service. They were knowledgeable about personal budget, use of ATM, wrong debit, bank account interest, loan interest, bounced cheque and purchasing power of money driven inflation. The study further discovered a positive effect of financial literacy on retirement planning and preparation. Thus, as the financial literacy of the employees with the Ghana Immigration Service increased, it corresponded with their retirement planning and preparations. It therefore recommends that employees are periodically advised by financial experts and analysts during meetings on the benefits inherent in utilizing one’s financial knowledge since it has an impact on the overall wellbeing.