Financial Attitudes and Micropension Scheme Participation Among Informal Economy Workers in Ghana: Application of the Theory of Planned Behaviour

Abstract

Micropension schemes (MPS),  instituted for informal economy workers have been studied to guarantee economic security after retirement, yet a chunk of these workers are left out of the scheme. This study relied on the hypotheses of the Theory of Planned Behaviour (TPB) to investigate the financial attitude of informal economy workers towards pension saving offered in MPS. Through a mixed research approach, I interrogated the effect of financial knowledge, financial planning and financial risk tolerance, which constitute the financial attitude of a worker,  on  the likelihood of saving in an MPS or otherwise. I used logistic regression and synthesis from interviews of key informants  that yielded themes, to conclude that informal economy workers with financial attitudes such as financial planning exhibited higher probabilities of contributing to MPS compared to those who have less or no financial attitudes.