Financial literacy and retirement planning among employees at Ghana Gripd company

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.