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Financial Literacy and Retirement Planning of Working-Age People

Author

Listed:
  • Tatiyaporn SIRISAKDAKUL

    (Faculty of Liberal Arts and Management Science, Kasetsart University, Thailand)

  • Butsakorn KHORNJAMNONG

    (Faculty of Liberal Arts and Management Science, Kasetsart University, Thailand)

Abstract

Objective - This study aimed to investigate the level of understanding of financial knowledge and the relationship between financial literacy and retirement planning of working-age people. Methodology � The participants of the study were residents of Sakon Nakhon, Nakhon Phanom and Mukdahan, Thailand. The questionnaire is the research tool for collecting data with 1,200 adults, aged between 25-60. This study will use a descriptive statistical analysis to describe frequency, percentage, mean and mode. Ordinary Least Squares (OLS) method is widely used to describe the relationship between financial literacy and retirement planning. Findings � The result show that the level of education has a positive relationship with financial literacy. Most of middle lower income people have a moderate to low level of the basic financial literacy and are not involved in retirement planning. The respondents of women in Sakon Nakhon, Nakhon Phanom and Mukdahan have more understanding of retirement planning than men; this result is different to the previous research undertaken by Lusardi and Mitchell (2011), Bucher-Koenen and Lusardi (2011) Grohmann et al. (2016). Novelty � This paper will study the level of understanding of financial knowledge and the relationship between financial literacy and retirement planning of working-age people. Most of the previous research concentrated on people who live in the big city; there was. little focus on people living in the countryside, especially in the Northeastern part of Thailand. Not too many papers have focused on the working-age people, who in due course will contribute to Thailand becoming an Aging Society. It could help to the government, labor union, Bureau of Financial Inclusion Policy and Development and related departments to know the level of financial knowledge and retirement planning. So, they could provide guidance of financial literacy to community. Type of Paper - Empirical

Suggested Citation

  • Tatiyaporn SIRISAKDAKUL & Butsakorn KHORNJAMNONG, 2020. "Financial Literacy and Retirement Planning of Working-Age People," GATR Journals jfbr177, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jfbr177
    DOI: https://doi.org/10.35609/jfbr.2020.5.3(4)
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    References listed on IDEAS

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    1. Maarten C.J. van Rooij & Annamaria Lusardi & Rob J.M. Alessie, 2012. "Financial Literacy, Retirement Planning and Household Wealth," Economic Journal, Royal Economic Society, vol. 122(560), pages 449-478, May.
    2. Sophia Johnson, 2016. "Financial Literacy and Its Effect on Economic Empowerment Among Self Help Group Women Members," GATR Journals jfbr111, Global Academy of Training and Research (GATR) Enterprise.
    3. repec:ecj:econjl:v:122:y:2012:i::p:449-478 is not listed on IDEAS
    4. Saeed Pahlevan Sharif & Ashraf Sadat Ahadzadeh & Jason James Turner, 2020. "Gender Differences in Financial Literacy and Financial Behaviour Among Young Adults: The Role of Parents and Information Seeking," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 672-690, December.
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    More about this item

    Keywords

    Financial literacy; Retirement planning; Working-age people;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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