Abstract:
In the 21 st century, retirement planning is an evitable aspect of employees’
financial decisions. Employees who are financially literate have been found to
have healthy lives during retirement while financially illiterate employees
struggle to survive during that period. It is in this light that, the study examined
the effect of financial literacy on retirement planning among employees at
Ghana Grid Company (GRIDCO). The study employed the quantitative
approach and causal research design due to the research objectives. The study
randomly sampled 169 employees of which 110 (65.1% response rate) of their
questionnaires retrieved were relevant for analysis. The Statistical Package for
Social Sciences (SPSS) version 24 was used to process the data. Also, analytical
tools such as frequencies, percentages, means, standard deviations and linear
regression were used analysis the study’s research objectives. The study found
that, financial literacy has a moderate and positive significant effect on
employee’s retirement planning. The study therefore concluded that, financial
literacy is critical for effective long-term financial decisions concerning
retirement planning. Based on this, the study recommended that, management
of GRIDCo should design special programmes for their employees in bid to
improve their knowledge on money management. These special programmes
should focus on financial management in the areas of savings, budgeting,
resource utilisation, investment and insurance.
