Abstract:
Abstract
Retirement preparation determinants have been a topic of discussion among governments, policy makers
and researchers for some years now. Financial Literacy has been established as an important determinant
of retirement preparation, yet little is known about how financial literacy influences the retirement
preparation among self-employed workers. Our study fills the gap by assessing the relationship between
financial literacy, financial inclusion and retirement preparation of self-employed workers in Ghana with
household income levels serving as a mediating variable. The study adopted purposive and convenient
sampling techniques to distribute 600 questionnaires among the self-employed workers in the Kumasi
Metropolis in the Ashanti Region of Ghana. Using a structural equation modelling method, the results of
the study showed that that financial literacy has a positive significant relationship with retirement
preparation. Additionally, the study also revealed household income level mediates the relationship
between financial literacy and retirement preparation as well as the relationship between financial
inclusion and retirement preparation of self-employed workers in Ghana. Based on the findings of the
study, it is recommended that policymakers, financial institutions, and non-government organizations
should formulate financial education initiatives specifically tailored for self-employed workers that will
enhance their financial literacy levels and also increase their income levels.
