What matters for pension planning in Turkey: financial literacy or perceived consumer risks?
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 25 October 2021
Issue publication date: 3 January 2022
Abstract
Purpose
This study mainly aimed to show that financial literacy is not always enough in explaining workers' individual pension plan ownership as financial literacy knowledge does not always result in financially literate decisions/actions, and in such cases perceived consumer risks can be used to explain the IPP ownership decision of workers.
Design/methodology/approach
The data were collected via a questionnaire adapted from earlier questionnaires using convenience and snowball sampling methods with Internet based applications such as Facebook, Twitter, Instagram and WhatsApp. T-tests, ANOVA and Chi-Square tests were conducted to find out if there is a relation/interaction between individual pension plan (IPP) ownership and financial literacy, and perceived consumer risks (N = 651).
Findings
It is found out that financial literacy level does not have a statistically significant relation with individual pension system (IPS) involvement of workers in Turkey, but perceived consumer risks show differences based on IPP ownership.
Originality/value
To the best of authors’ knowledge, this study contributes to the literature being the first paper to study the relationship between financial literacy and workers' IPP ownership decisions in Turkey and it also shows that perceived consumer risks can be used for explaining workers' IPS involvement in cases where financial literacy knowledge does not translate into financially literate decisions.
Keywords
Citation
Türkmen, A. and Kılıç, Y. (2022), "What matters for pension planning in Turkey: financial literacy or perceived consumer risks?", International Journal of Social Economics, Vol. 49 No. 1, pp. 138-151. https://doi.org/10.1108/IJSE-03-2021-0140
Publisher
:Emerald Publishing Limited
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