The Relationship between Financial Literacy and Retirement Planning among Informal Sector Workers in Randburg, South Africa

Gutura Rudo () and Chisasa Joseph ()
Additional contact information
Gutura Rudo: University of South Africa
Chisasa Joseph: University of South Africa

Folia Oeconomica Stetinensia, 2024, vol. 24, issue 1, 56-74

Abstract: Research background Retirement planning is viewed as one of the cornerstones of long-term household financial security. The responsibility of retirement planning has now been shifted to the individual and is no longer the responsibility of the employer. Purpose This paper examines the link between financial literacy and retirement planning among informal sector traders in the Randburg area of Johannesburg, South Africa. Research methodology A questionnaire approach was used to collect data from 269 randomly selected informal sector respondents. The data was analysed using ordinal regression. Robustness tests were executed using the Wald test. Results Findings reveal that financial literacy is linked to retirement planning, and especially with reference to informal sector workers. Additionally, education, income and the informal business sector were observed to have a positive and significant influence on retirement planning. Novelty The paper contributes to both theoretical and practical discourses on retirement planning for informal sector entrepreneurs which has not received much attention. These results are important for policy makers in retirement planning as well as curriculum development.

Keywords: Retirement planning; financial planning; informal sector workers; income (search for similar items in EconPapers)
JEL-codes: G5 G50 G51 G53 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/foli-2024-0004 (text/html)

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:vrs:foeste:v:24:y:2024:i:1:p:56-74:n:1004

DOI: 10.2478/foli-2024-0004

Access Statistics for this article

Folia Oeconomica Stetinensia is currently edited by Waldemar Tarczyński

More articles in Folia Oeconomica Stetinensia from Sciendo
Bibliographic data for series maintained by Peter Golla ().