The Determinants of Retirement Planning Behaviour: Evidence from the Ministry of Home Affairs and Immigration in Namibia

Evidence suggests that governments in many developing countries are faced with the challenge of providing sufficient retirement benefits for their aging population and majority still live on the borderlines of poverty with pension funds unable to provide a decent lifestyle. This paper examines the determinants of retirement planning behaviour among 245 employees in the Ministry of Home Affairs and Immigration using a probit model. The results reveal that investment and saving decisions are positive and significantly associated with the level of financial literacy, economic knowledge, educational attainment, social interaction and financial advice. Being female inversely affects investment and saving decisions. The disaggregated analysis showed that the effects of these factors are consistent across the different age groups. Thus, any policy option that can enhance the economic and financial knowledge of employees and their educational attainment will improve their retirement planning behaviour directly and indirectly through social interaction.