Predictors of Pension Finance Literacy: A Survey of Members of Occupational Pension Schemes in Kenya

Amos Gitau Njuguna, John Kennedy Otsola

Abstract


Pension finance literacy enables individuals to plan for retirement, make proper choices on pension products and
contribute effectively in management of their pension schemes. This study sought to determine the pension
finance literacy levels and the variables that influence it amongst members of occupational retirement schemes in
Kenya. The sample consisted of 2395 (response rate 65%) individuals drawn from 648 occupational retirement
schemes. A binary measure of pension finance literacy was constructed and one way ANOVA and post hoc tests
using the Tukey approach were conducted to determine the bases on which pension finance literacy levels differ.
The study concludes that pension finance literacy differs significantly on the basis of age, education level,
gender, job experience, management level, income, pension plan design, participation in previous pension
finance literacy program, area of specialization and membership in a pension plan board but does not differ on
the basis of the marital status of the individuals.


Full Text: PDF DOI: 10.5539/ijbm.v6n9p101

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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