Predictors of Pension Finance Literacy: A Survey of Members of Occupational Pension Schemes in Kenya

Pension finance literacy enables individuals to plan for retirement, make proper choices on pension products andcontribute effectively in management of their pension schemes. This study sought to determine the pensionfinance literacy levels and the variables that influence it amongst members of occupational retirement schemes inKenya. The sample consisted of 2395 (response rate 65%) individuals drawn from 648 occupational retirementschemes. A binary measure of pension finance literacy was constructed and one way ANOVA and post hoc testsusing the Tukey approach were conducted to determine the bases on which pension finance literacy levels differ.The study concludes that pension finance literacy differs significantly on the basis of age, education level,gender, job experience, management level, income, pension plan design, participation in previous pensionfinance literacy program, area of specialization and membership in a pension plan board but does not differ onthe basis of the marital status of the individuals.