Received: 2016-11-20  |  Accepted: 2017-02-27

Title

Preconditions of financial safety during lifecycle: the financial literacy and retirement planning in Vietnam


Abstract

This study was performed to evaluate and examine financial literacy and retirement planning in sector employment in Vietnam in the context of financial safety during lifecycle. In order to collect primary data, a questionnaire was designed and distributed to 257 employees in the public and private sectors in Ho Chi Minh City. The results of descriptive analysis indicated that those who work in the public sector have a higher percentage of correct answers to questions about financial literacy and knowledge of social insurance than that of employees in the private sector. The results of a linear probability model (LPM) and two-stage least squares (2SLS) regression show that financial knowledge and regular saving are significant factors that enhance retirement planning, whereas sector employment is insignificant to retirement planning. These findings should improve the knowledge of financial literacy, pensions and social insurance disseminated through retirement seminars and education programs for workers. More research, however, should be conducted on these topics in Vietnam.


Keywords

financial safety, financial literacy, retirement planning


JEL classifications

L32 , D14 , D91


URI

http://jssidoi.org/jssi/papers/papers/view/235


DOI

10.9770/jssi.2017.6.4(8)

Authors

Nguyen, Thi Anh Nhu
Tomas Bata University in Zlín
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Belás, Jaroslav
Tomas Bata University in Zlín
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Habánik, Jozef
Alexander Dubček University of Trenčín
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Schönfeld, Jaroslav
University of Economics, Prague
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Title

Journal of Security and Sustainability Issues


Issue date

2017


ISSN

ISSN 2029-7017 (print)
ISSN 2029-7025 (online)

Cited

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