Financial Literacy and Retirement Savings Ownership A.M. Adiandari, N.D.A. Amrita, H. Winata
Faculty of Economy, University of Ngurah Rai, Bali, Indonesia
Abstract
This study aims to determine the relationship of financial literacy and retirement savings ownership. This study also tests whether social economic characteristics, such as marital status, number of children, length of work and monthly income can affect a person decision to own retirement savings for future prosperity. The research method is quantitative, using spearman correlation test with the sample number of 170 employees from a state owned bank in Payakumbuh, West Sumatera, Indonesia. Results showed that only the number of children and length of work of the social economic characteristics has a relationship with retirement savings ownership, whereas marital status and monthly income has no relationship with retirement savings ownership. Moreover, findings showed that financial literacy has a relationship with retirement savings ownership. Hence, improving financial knowledge, especially directly related to retirement savings is necessary to increase penetration and density of retirement savings in Indonesia.
Keywords: Retirement Savings Ownership, Indonesian Social Economic Characteristics, Financial Literacy.
