Retirement Risk Perception, Retirement Planning And Financial Wellbeing Of Informal Sector Workers In Accra

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.