Menu
College of Business & Finance

Journal of Business and Socio-economic Development

About the Journal
Submit your paper

Financial literacy and personal retirement planning: a socioeconomic approach

License

Published in Journal of Business and Socio-economic Development. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Download PDF

Abstract

Purpose

The purpose of this study was to investigate the effect of financial literacy on personal retirement planning in Bukavu city in the Democratic Republic of the Congo (DRC), which is a Sub-Saharan underdeveloped country with a weak pension and social security system.

Design/methodology/approach

This study used a structural equation modeling and a sample of 361 public sector employees selected in Bukavu city in the DRC. The data were collected through a survey questionnaire, and the data were analyzed using SPSS and SMART PLS software.

Findings

The results from the study revealed that financial literacy has a significant impact on personal retirement planning. Two constructs of financial literacy, respectively, computation capability and financial knowledge were found to have a significant impact on personal retirement planning, while financial education and attitudes toward financial products were found not significant in explaining personal retirement planning.

Practical implications

The findings from this study can be used by policy makers in the DRC to design socioeconomic programs, aiming to increase the level of financial literacy in the country and awareness on personal retirement planning.

Originality/value

The reviewed studies were based mostly on developed countries, and countries were the social security system works effectively. We have not found a study on financial literacy and retirement planning that has been conducted in the DRC, which is a country with specific characteristics compared to developed countries.

  • ISSN: 2635-1374
  • e-ISSN: 2635-1692
  • Online date, start – end: 2021
  • Copyright Holder: Ahlia University
  • Open Access: open access
  • Editor: Professor Allam Hamdan

Further Information

COME AND SEE FOR YOURSELF HOW AHLIA CAN SET YOU ON THE PATH TO YOUR GLOBAL FUTURE.​

Apply Now
Get to know Ahlia
Find a programme

HEC ACCREDITED | MET BQA REQUIREMENTS

close-link
Live

19th Graduation Ceremony
Date: 07/12/2024 | Time: 06:30 PM (UTC+03:30)

Watch the Ahlia University 19th Graduation Ceremony live on YouTube by clicking on the button below.
 
close-link
See Event Details