Abstract:
The study was conducted to determine the effect of financial literacy on
pension planning, style of investment and the level of financial literacy
amongst public basic school teachers within the Ablekuma Central
Municipality in the Greater Accra Region of Ghana. Pension
reforms necessitate the development of novel mechanisms for augmenting
income in retirement, boosting coverage, and maintaining the financial
viability of pension plans Holzmann (2013). According to Mitchell and
Lusardi (2007), the likelihood that those with poor financial knowledge will be
less likely to plan for retirement is higher and as a consequence, acquire
significantly less wealth. Quantitative data is usually used by positivists to
perform analysis, measure objectively, and generate unprejudiced verifiable
research that is unaffected by socio-cultural influences (Neuman 2006). The
study therefore, used a mixed approach of descriptive and explanatory
research designs for the study. The span of data collection and coverage; using
questionnaires, from 171 respondents using the Yamane sample size formula
was from 1stOctober, 2020 to 31stJanuary, 2021. The study revealed that the
level of financial literacy amongst the respondents is moderate because most
of them were identified to be degree holders. The study also examined that
financial literacy has a positive effect on pension planning amongst the
respondents. Again, the work pointed out that financial literacy has no effect
on the style of investment amongst the response units. The study recommends
that the government provides a comprehensive financial education for public
basic school teachers. It finally suggests introducing financial literacy from the
basic to senior high levels as well as the colleges of education.
