Abstract:
Abstract
The issue of life in old age has become a globally discussed topic because of the changes in the
world`s population demographics and the challenges such changes have placed on individual households
as well as governments all over the world. There are several challenges associated with life in old age. At
this stage of life, the income of the individual usually reduces as a result of his or her withdrawal from
active work, he or she feels lonely, and in addition, increases in expenditure as a result of deteriorated
health conditions which will require more financial commitment to manage the health conditions. People
at this stage of life most times become dependent on their children and family members who may not be
adequately financially resourced because of their already existing responsibilities. This study aims to
explore the psychological determinants of retirement preparation among the informal sector workers in
Ghana. Using a cross-sectional approach, the study collected data from the informal sector workers in the
Kumasi Metropolis of the Ashanti Region of Ghana. The region was chosen for the study because it is the
most populous region in the country with more than 83% of the people in the informal sector. The
Kumasi metropolis is centrally located in the Ashanti Region of Ghana. It is the second largest city in
Ghana and the administrative capital of the Ashanti Region. This study used a quantitative research
design, using a well-structured questionnaire to collect data from 550 respondents through purposive and
convenience sampling techniques, and using structural equation modeling for the data analysis. The study
revealed a significant positive relationship between future time perspective and retirement preparation.
The study also revealed a significant positive relationship between attitude towards retirement and
retirement preparation. However, there was no significant relationship between retirement goal clarity and
retirement preparation. In testing the moderating role of age, the findings of the study indicated that while
age significantly moderates the relationship between retirement goal clarity and retirement preparation; it
does not moderate the effect of future time preparation on retirement preparation. It is recommended that
government policy on adult education should cover the syllabus on the need for preparing for retirement
as it will help the workers in the informal sector to take the necessary steps to prepare adequately for
retirement.
Keywords: Retirement Preparation; Informal Sector Workers; Retirement Goal Clarity; Attitude
Towards Retirement; Future Time Perspective
