Analysis of the determinants on Retirement Planning in Kenya: A Survey of registered pension schemes in Nairobi

Abstract

The Main objective of the study was to explore the determinants of Retirement Planning in Kenya a survey of registered pension schemes in Nairobi. The population of the study comprised of members of registered pension schemes in Nairobi. Stratified sampling was used to select respondents from each of the sampled schemes. T test used to examine the data with the objective determining whether there is a significant relationship between financial literacy and retirement planning. A number of conclusions can be drawn from the results of this study that show the relationship between financial literacy and retirement planning and various social economic characteristics. The findings indicate that financial literacy, income and a respondent’s education level are a significant determinant of retirement planning. On the other hand, age and years a respondent has been married are not significant determinants of retirement planning. Overall however, the financially literacy was a major determinant for members of pension schemes largely because financial literacy has an effect on both savings and portfolio choice. We can therefore conclude that financial literacy is a significant determinant of retirement planning for pension scheme members and there exists a relationship between financial literacy and retirement planning.