FINANCIAL LITERACY AND PENSION PLANNING OF MONGOLIAN HERDERS

Gombodorj Ganchimeg (), Johan van Ophem () and Nyam-Ochir Gankhuyag ()
Additional contact information
Gombodorj Ganchimeg: Károly Ihrig Doctoral School of Management and Business, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary
Johan van Ophem: Department of Social Sciences, Wageningen University of Research, Wageningen, The Netherlands
Nyam-Ochir Gankhuyag: Mongolian University of Life Sciences, Ulaanbaatar, Mongolia

Annals of Faculty of Economics, 2019, vol. 1, issue 2, 137-149

Abstract: Pension planning is an internationally accepted tool for income substitution and poverty reduction in old age. The livestock sector is a traditional economic sector that still plays an essential role in the culture and economics of Mongolia. Herders account for nearly 24.5 percent of the total workforce. Pension income is the second monetary income source for herders. However, as of 2017, 32 percent of herder households are in poverty, and only 24 percent of herders participated in the social insurance program. This paper investigates the pension planning of a survey among 350 herder households in Mongolia in 2017. The study aims to pay attention to herder's pension awareness, knowledge, participation in pension, and to identify factors that influence pension participation. The research results indicate that less than half of total herders make financial plans for their retirement, although only 27 percent of participants pay social insurance fees regularly in various amounts. Social insurance fees paid by the herders are positively affected by education, age, and social insurance coverage, whereas the size of the loan has a negative impact. Our conclusion highlighted that improving herders' motivation, knowledge about retirement and basic financial literacy are essential. Policymakers and local government agencies need to develop policy tools to motivate the young herder's pension participation to break out a poverty cycle.

Keywords: financial behavior; financial literacy; pension planning; herders Mongolia (search for similar items in EconPapers)
JEL-codes: D14 G40 J43 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://anale.steconomiceuoradea.ro/volume/2019/n2/014.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2019:i:2:p:137-149

Access Statistics for this article

More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Catalin ZMOLE ( this e-mail address is bad, please contact ).