Financial Literacy and Retirement Preparedness among University of Bohol Employees

Abstract

Financial literacy refers to the awareness and knowledge of business and finance, financial capability, money management, and financial planning, which is a vital tool for retirement preparedness. This paper has investigated the level of retirement preparedness of the UB Employees vis-à-vis their level of financial literacy. The study applied a quantitative approach, utilizing the descriptive-normative survey method with a modified survey questionnaire. The quantitative data collected were coded to ensure the confidentiality of the data. The analysis, comparison, and checking for similarities or differences in financial literacy in correlation with retirement preparedness were statistically treated using the Pearson Product Moment Correlation, Chi-Square, and t-test. Based on the results, showed that there is a negative correlation between financial literacy and the level of retirement preparedness. In conclusion, a high level of financial literacy does not translate to preparation for life after employment. Young professionals are slightly more financially literate than their older counterparts. However, most of them do not have any investments allotted for retirement. Implications of this study would serve as the basis for attaining the employees’ goal for their retirement preparation and will form part of their corporate social responsibility (CSR) project for the employees.