Original Research

Perceptions of retirement adequacy in Lesotho: Behavioural and socio-economic influences

Tokiso Nthebe, Michelle Reyers
Journal of Economic and Financial Sciences | Vol 11, No 1 | a209 | DOI: https://doi.org/10.4102/jef.v11i1.209 | © 2018 Tokiso Nthebe, Michelle Reyers | This work is licensed under CC Attribution 4.0
Submitted: 19 April 2018 | Published: 06 December 2018

About the author(s)

Tokiso Nthebe, Department of Financial Management, University of Pretoria, South Africa
Michelle Reyers, Department of Financial Management, University of Pretoria, South Africa; and, School of Economics and Finance, Massey University, New Zealand

Share this article

Bookmark and Share


Orientation: Saving for retirement is complicated for employees because of the complexity of the financial decisions involved. Financial decision-making is believed to be associated with a number of behavioural and socio-economic factors, and these factors may in turn be related to whether employees perceive themselves to be adequately saving for retirement.

Research purpose: This study assesses which factors predict whether individuals working in both the financial and non-financial sectors in Lesotho perceive themselves to be adequately preparing for retirement. The main focus is on financial literacy (FL), financial risk tolerance (FRT) and future time perspective (FTP). As a secondary focus, the study looks at the potential differences between two sectors of employees that may be attributed to differing levels of FL.

Motivation for the study: This study focuses on Lesotho to provide an African context on retirement saving and hopefully lay the foundation for future research in the field of retirement saving.

Research approach/design and method: Data were collected from 200 participants using an online survey at three companies in Lesotho and analysed using bivariate and multivariate techniques, with a linear regression model used in terms of the multivariate analysis.

Main findings: This study finds that FL, FRT and FTP are all positively related to perceived retirement adequacy (RA) in the bivariate analysis. In the multivariate analysis, for those working outside the financial sector, objective FL, subjective FL and FTP were positively related to perceived RA, whereas for those in the financial sector, higher levels of FTP, higher household income and being older were all associated with higher levels of perceived RA.

Practical/managerial implications: The participants in this study are not representative of the broader Lesotho population; therefore, further research would be required before this conclusion is generalised.

Contribution/value-add: These findings provide insights to industry role players about the profile of individuals who are confident about retirement savings and how this contrasts with those who are not confident.


financial literacy; financial risk tolerance; future time perspective; retirement confidence


Total abstract views: 748
Total article views: 624

Crossref Citations

No related citations found.