Abstract:
The study examined the mediating effects of retirement risk perception,
adaptation intention, and financial capability on the relationship between
retirement risk awareness and retirement planning. It also examined the
mediating effects of retirement planning on retirement risk perception and
financial wellbeing, as well as on adaptation intention and financial wellbeing.
The study embraced the positivist paradigm by relying on a quantitative
research approach and an explanatory research design. For data collection, a
structured, self-administered questionnaire was used. Using a one-stage
stratified sampling method and a simple random sampling procedure, 406
respondents were selected from informal sector workers in the Greater Accra
Region. The data was analysed using partial least square structural equation
modelling. The results revealed a significant positive link between retirement
risk awareness, retirement planning, and financial wellbeing. Retirement risk
perception, adaptation intention, and financial capability partially mediated the
relationship between retirement risk awareness and financial wellbeing. The
study concluded that retirement risk awareness and credible retirement
planning offer opportunities for informal sector workers to strategically escape
retirement tragedy. In addition, awareness sources essentially prompt informal
sector workers on the severity of financial risk and steps to minimise it. The
study recommended that Pension trustee institutions in collaboration with the
Union of Informal Workers’ Associations (UNIWA) could organise retirement
risk awareness programmes to help informal sector workers appreciate their
financial retirement risk and adopt retirement planning and, consequently,
improve their financial wellbeing.
