MJAMR

Financial Literacy, Incentives Terms, Retirement Planning And Social Security Compliance Among Small Medium Enterprise In Kampala, Uganda

Nakirya Oliver, Irumba Alex


Abstract

The purpose of the study was to examine the relationship between financial literacy, incentives terms, retirement planning on social security compliance among SMEs within Kampala Central Division. The study was guided by the objectives; to examine the relationship between financial literacy and retirement planning; incentives terms and retirement planning; retirement planning and social security compliance; financial literacy and social security compliance; incentives terms and social security compliance; and to examine the influence of financial literacy, incentives terms and retirement planning on social security compliance among SMEs. The study adopted a cross sectional research design along with a quantitative research approach. A sample of 377 SMEs was selected using simple random sampling from a total of 21,097 SMEs within Kampala Central Division. Primary data was obtained using a structured questionnaire instrument. The validity of the instrument was determined by computing CVI and reliability using Cronbach Alpha Coefficient. Data analysis was carried out using SPSS (v.25) obtaining descriptive, factor analysis and inferential statistics for interpretation of results. The study findings were; a positive relationship between financial literacy and retirement planning; positive relationship between incentives terns and retirement planning; positive relationship between retirement planning and social security compliance; a positive relationship between financial literacy and social security compliance; and a positive relationship between incentives terms and social security compliance. The study further found that jointly financial literacy, incentives terms and retirement planning were significant predictors of social security compliance. The findings also noted that the most critical predictor of social security compliance is retirement planning. The study concluded that there are varied predictors for social security compliance, and the relevance of financial literacy, incentives terms and retirement planning cannot be underestimated. Furthermore, the study concluded that social security compliance is more internally that externally driven. Based on the findings, offering of free investment advice; offering financial education; availing diversity of investment options; offering workplace retirement plan; and updating employees of their current accumulated savings were recommended.

Keywords

Financial Literacy Incentives Terms Retirement Planning Social Security Compliance and Small
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Nakirya Oliver & Irumba Alex (2024). Financial Literacy, Incentives Terms, Retirement Planning And Social Security Compliance Among Small Medium Enterprise In Kampala, Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 3(6). https://journals.miu.ac.ug/pages/article.php?article_id=1776

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