ORIENTATION : Saving for retirement is complicated for employees because of the complexity of
the financial decisions involved. Financial decision-making is believed to be associated with a
number of behavioural and socio-economic factors, and these factors may in turn be related to
whether employees perceive themselves to be adequately saving for retirement.
RESEARCH PURPOSE : This study assesses which factors predict whether individuals working in
both the financial and non-financial sectors in Lesotho perceive themselves to be adequately
preparing for retirement. The main focus is on financial literacy (FL), financial risk tolerance
(FRT) and future time perspective (FTP). As a secondary focus, the study looks at the potential
differences between two sectors of employees that may be attributed to differing levels of FL.
MOTIVATION FOR THE STUDY : This study focuses on Lesotho to provide an African context on
retirement saving and hopefully lay the foundation for future research in the field of retirement
RESEARCH APPROACH/DESIGN AND METHOD : Data were collected from 200 participants using an
online survey at three companies in Lesotho and analysed using bivariate and multivariate
techniques, with a linear regression model used in terms of the multivariate analysis.
MAIN FINDINGS : This study finds that FL, FRT and FTP are all positively related to perceived
retirement adequacy (RA) in the bivariate analysis. In the multivariate analysis, for those
working outside the financial sector, objective FL, subjective FL and FTP were positively
related to perceived RA, whereas for those in the financial sector, higher levels of FTP, higher household income and being older were all associated with higher levels of perceived RA.
PRACTICAL/MANAGERIAL IMPLICATIONS : The participants in this study are not representative of the
broader Lesotho population; therefore, further research would be required before this
conclusion is generalised.
CONTRIBUTION/VALUE-ADD : These findings provide insights to industry role players about the
profile of individuals who are confident about retirement savings and how this contrasts with
those who are not confident.