Original Research

Retirement funding adequacy: The influence of provisions, attitudes and intentions

Bomikazi Zeka, Chantal Rootman, Janine Krüger
Journal of Economic and Financial Sciences | Vol 13, No 1 | a486 | DOI: https://doi.org/10.4102/jef.v13i1.486 | © 2020 Bomikazi Zeka, Chantal Rootman, Janine Krüger | This work is licensed under CC Attribution 4.0
Submitted: 19 June 2019 | Published: 23 April 2020

About the author(s)

Bomikazi Zeka, Canberra Business School, Faculty of Business, Government and Law, University of Canberra, Canberra, Australia
Chantal Rootman, Department of Business Management, Faculty of Business and Economic Sciences, Nelson Mandela University, Port Elizabeth, South Africa
Janine Krüger, Department of Business Management, Faculty of Business and Economic Sciences, Nelson Mandela University, Port Elizabeth, South Africa


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Abstract

Orientation: Individuals are encouraged to start saving for retirement as early as possible to ensure that sufficient retirement funding is accumulated. However, few individuals are financially independent at retirement.

Research purpose: To examine the influence of provisions, attitudes and intentions on the retirement funding adequacy of black individuals, as the majority of the South Africans are black individuals.

Motivation for the study: Despite the increased access to financial services and products, many black individuals reach retirement age destitute. This research investigated how provisions for retirement, attitudes towards retirement and retirement intentions influence the retirement funding adequacy of black South Africans.

Research approach/design and method: A quantitative approach was applied, whereby questionnaires were distributed to a sample of 441 black individuals in the Eastern Cape Province of South Africa through stratified sampling and convenience sampling.

Main findings: The results of the research revealed that retirement provisions and retirement attitudes exert the most influence on the retirement funding adequacy of black South Africans. This suggests that black South Africans should focus on amassing retirement savings and fostering a positive attitude towards retirement to ensure that they reach retirement age with adequate financial resources for retirement.

Practical/managerial implications: Financial institutions and financial planners should be aware that individuals’ provisions for retirement and attitudes towards retirement are significant contributors in ensuring that retirement funding adequacy is ascertained.

Contribution/value-add: This study made a contribution in understanding the aspects that influence the retirement funding adequacy in the South African context, particularly amongst black South Africans.


Keywords

retirement attitudes; retirement funding adequacy; retirement intentions; retirement provisions; retirement savings

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