Pension Literacy and Retirement Planning in an Emerging Economy

Abstract

This paper links pension literacy to retirement planning in an emerging economy. The results show that the correct knowledge about pension basics and savings rate have a positive effect on employees’ efforts to plan for their retirement. Conversely, employees’ correct knowledge about pension lump sum impair their retirement planning efforts. Enhanced retirement preparedness is associated with the correct knowledge of pension basics and lump sum, pension savings rate and lump sum or pension basics, savings rate and lump sum all together.

Keywords: Pension Literacy, Retirement Planning, Pension Savings, Lump Sum, Ghana

JEL Classification: G02