| Title : | Effect of financial literacy on retirement preparedness among Nepalese commercial bank employees | | Material Type: | printed text | | Authors: | Khem Raj Dahal, Author | | Publication Date: | 2018 | | Pagination: | 114p. | | Size: | GRP/Thesis | | Accompanying material: | 11/B | | Languages : | English | | Descriptors: | Financial literacy
| | Class number: | 374.10 | | Abstract: | Financial literacy is one understands and knowledge of the financial concepts. The ability to manage personal finances has become increasingly important in today’s world. People must plan for long term investments for their retirement and their children’s health and education. Financial knowledge includes perceived knowledge, actual knowledge and financial skill. Financial literacy consists in the knowledge and understanding of financial concepts as well as the capacity to apply them in order to make effective decisions across a range of financial contexts, improving the financial wellbeing of the society. Financial literacy is a measure of the degree to which one understands key financial concepts and possesses the ability and confidence to manage personal finances through appropriate decision and planning. Increasing financial literacy and capability promotes better financial decision making. Thus, enabling better planning and management of life events such as education, saving for health, purchase of house and land, retirement etc. this is particularly more relevant for bank employees.
The study is based on primary data. The questionnaire survey is conducted to know level of financial literacy among commercial bank employees in Nepal. A set of questionnaire was prepared and distributed to the random employees from different commercial banks. The questions were designed to get the views, related information from the respondents. Data were collected using well formulated and structured questionnaires. The respondents represent 172 employees from 20 commercial banks working in various departments, having different work experience, different age groups and the different educational level. Descriptive statistics, correlation coefficient and regression method is applied to estimate the relationship between dependent variable i.e. retirement planning with independent variables i.e. age, gender, education, income, basic financial literacy and advance financial literacy. The collected data has been processed with the use of SPSS statistical package. Therefore, different statistical tests of significance for validation of model such as t-test, F-test and R-square test were also used.
The study found that financial literacy affects the retirement planning of the commercial bank employees. The result shows that there is a positive relationship between age and retirement planning. It indicates that higher the age of employee, higher would be the planning for retirement. Likewise, the result shows that there is a positive relationship between education and retirement planning. It indicates that higher the education, higher would be the retirement planning. The study also shows that level of income is positively related to retirement planning, which indicates that increase in income level leads to increase in retirement planning. Similarly, the study reveals that financial literacy is positively related to the retirement planning. It indicates that higher the level of financial literacy, higher would be the retirement planning. The regression results also show that age, education, level of income, basic financial literacy and advance financial literacy have positive impact on retirement planning. However, the results are significant only for age, basic financial literacy and advance financial literacy at 5 percent level. On the basis of analysis, the study concludes that financial literacy followed by age are the major factors influencing the retirement planning of employee in Nepalese commercial banks
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Effect of financial literacy on retirement preparedness among Nepalese commercial bank employees [printed text] / Khem Raj Dahal, Author . - 2018 . - 114p. ; GRP/Thesis + 11/B. Languages : English | Descriptors: | Financial literacy
| | Class number: | 374.10 | | Abstract: | Financial literacy is one understands and knowledge of the financial concepts. The ability to manage personal finances has become increasingly important in today’s world. People must plan for long term investments for their retirement and their children’s health and education. Financial knowledge includes perceived knowledge, actual knowledge and financial skill. Financial literacy consists in the knowledge and understanding of financial concepts as well as the capacity to apply them in order to make effective decisions across a range of financial contexts, improving the financial wellbeing of the society. Financial literacy is a measure of the degree to which one understands key financial concepts and possesses the ability and confidence to manage personal finances through appropriate decision and planning. Increasing financial literacy and capability promotes better financial decision making. Thus, enabling better planning and management of life events such as education, saving for health, purchase of house and land, retirement etc. this is particularly more relevant for bank employees.
The study is based on primary data. The questionnaire survey is conducted to know level of financial literacy among commercial bank employees in Nepal. A set of questionnaire was prepared and distributed to the random employees from different commercial banks. The questions were designed to get the views, related information from the respondents. Data were collected using well formulated and structured questionnaires. The respondents represent 172 employees from 20 commercial banks working in various departments, having different work experience, different age groups and the different educational level. Descriptive statistics, correlation coefficient and regression method is applied to estimate the relationship between dependent variable i.e. retirement planning with independent variables i.e. age, gender, education, income, basic financial literacy and advance financial literacy. The collected data has been processed with the use of SPSS statistical package. Therefore, different statistical tests of significance for validation of model such as t-test, F-test and R-square test were also used.
The study found that financial literacy affects the retirement planning of the commercial bank employees. The result shows that there is a positive relationship between age and retirement planning. It indicates that higher the age of employee, higher would be the planning for retirement. Likewise, the result shows that there is a positive relationship between education and retirement planning. It indicates that higher the education, higher would be the retirement planning. The study also shows that level of income is positively related to retirement planning, which indicates that increase in income level leads to increase in retirement planning. Similarly, the study reveals that financial literacy is positively related to the retirement planning. It indicates that higher the level of financial literacy, higher would be the retirement planning. The regression results also show that age, education, level of income, basic financial literacy and advance financial literacy have positive impact on retirement planning. However, the results are significant only for age, basic financial literacy and advance financial literacy at 5 percent level. On the basis of analysis, the study concludes that financial literacy followed by age are the major factors influencing the retirement planning of employee in Nepalese commercial banks
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