Informal workers' perceptions of retirement planning in developing countries

Area of Science:

• Economics
• Development Studies
• Financial Inclusion

Background:

• Informal workers in developing nations often lack access to formal retirement planning.
• Superannuation funds, like Fiji's FNPF, are crucial for long-term savings but may not suit informal sector needs.
• A gap exists in understanding how informal workers perceive and interact with existing retirement savings schemes.

Purpose of the Study:

• To investigate vegetable market vendors' perceptions of the Fiji National Provident Fund (FNPF) for retirement planning.
• To identify barriers and facilitators for informal workers' engagement with superannuation in Fiji.
• To inform the development of inclusive financial products for self-employed individuals.

Main Methods:

• Qualitative research exploring perceptions of informal workers (vegetable market vendors).
• Focus on the Western division of Fiji, an agriculturally predominant area.
• Analysis of factors influencing accessibility to financial services like the FNPF.

Main Results:

• Respondents generally hold a positive view of the FNPF.
• A strong preference exists for customized retirement plans aligned with market vendors' income and livelihoods.
• Market vendors seek voluntary contribution systems for their FNPF accounts, bypassing mandatory employer contributions.
• Awareness of FNPF benefits is high, but adoption intention for current products is low.
• Age, gender, vendor duration, and other savings influence FNPF service accessibility.

Conclusions:

• The FNPF is perceived favorably, but current products do not meet the specific needs of informal market vendors.
• Tailored, voluntary contribution schemes are essential to encourage FNPF adoption among self-employed individuals.
• Policymakers must create adaptive FNPF products that acknowledge the realities of self-employment and voluntary participation to enhance retirement savings.