A Take-off Point for Retirement Program

Abstract

The growing challenges and opportunities presented by the global economy in the twenty-first century are causing an increase in anxiety and instability often in individuals with limited background in financial literacy. The most prone of this occupation are teachers in the public school system who constantly face problems on how to save, plan and prepare for retirement. This study delved on the factors affecting retirement planning focusing the relationship between financial knowledge, attitudes and practices of public school teachers. Descriptive correlational research design was used to 143 respondents complemented by a focus group discussion high ranking personnel in the Department of Education - El Salvador City Division. The data were analyzed using statistical tests in frequency, mean and correlation. Results revealed that respondents are highly knowledgeable when it comes to financial knowledge. The socio-demographic profile of the respondents particularly age has no significant relationship to the respondents’ financial knowledge, attitude, and practices, with the exception of those belonging the 22 - 40 age group and those in the older age above 40, when age is correlated to financial practices. In conclusion, there is a definite proof of high level financial knowledge and financial practice in this study leading to a better savings and investments with the right financial instruments, and in managing their assets and liabilities. Financial attitude plays an important role as well as in the coordination of financial knowledge and practice. In all, the study recommends building a comprehensive and practical financial literacy program relative to the tenure of the teachers and their impending retirement.