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The Effects of Financial Literacy Programs on Retirement Planning and Preparedness among Middle-Aged Adults in Oyo State

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  • Oge Augustine Sunday

    (Bamidele Olumilua University of Education, Science and Technology,Ikere Ekiti (Bouesti), Department of Management Science)

Abstract

This research study investigates the effects of financial literacy programs on retirement planning and preparedness among middle-aged adults in Oyo State. The study aims to determine the relationship between financial literacy and retirement planning and preparation among middle-aged adult teachers in Oyo State secondary schools, with a specific focus on male and female teachers. A descriptive survey research design is employed to observe and describe the behavior of the population without manipulation. The study sample consists of 1,125 public secondary school teachers, including 417 males and 708 females, selected through a multi-stage sampling approach. Data collection is done using a self-designed research instrument called the Financial Literacy and Retirement Planning Behavior (FLRPB) Scale. The FLRPB Scale demonstrates high internal consistency reliability with a Cronbach Alpha coefficient of 0.89. simple percentage for research questions, linear regression and univariate regression respectively use to test hypotheses one and two. The Oyo State study indicates a positive impact of financial literacy programs on middle-aged adults’ retirement planning, with 75% reporting increased knowledge and understanding and 60% enhanced confidence. Factors influencing participation include convenient schedules, relevant topics, accessible locations, and program effectiveness (65% agreement). Hypothesis testing confirms a significant association between financial literacy participation and retirement planning, explaining 66.1% of the variance. The study also highlights a moderating effect, suggesting that financial literacy participation influences the impact of gender on retirement planning. The adjusted R-squared value of 18.4% underscores the combined effects of gender and financial literacy, emphasizing the impactful role of financial literacy in shaping retirement readiness among middle-aged adults in Oyo State. It was concluded that The findings stress the importance of tailored financial education initiatives for empowering middle-aged adults and highlight the need for gender-specific considerations in program design for enhanced inclusivity and effectiveness. The research outcomes will have implications for policymakers, educators, and financial institutions in designing effective financial literacy programs tailored to the needs of middle-aged adults. The research also establishes a foundation for future studies in this field and underscores the significance of financial education in promoting financial well-being during the middle-aged adult stage of life.

Suggested Citation

  • Oge Augustine Sunday, 2024. "The Effects of Financial Literacy Programs on Retirement Planning and Preparedness among Middle-Aged Adults in Oyo State," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 1058-1071, January.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:1:p:1058-1071
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    References listed on IDEAS

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    1. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
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    4. Neha Garg & Shveta Singh, 2018. "Financial literacy among youth," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(1), pages 173-186, January.
    5. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy around the world: an overview," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 497-508, October.
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