Research topic

1. “Financial Wellness for Retirement
Preparedness among Employees of
Local Government Unit
in Batangas City”

2. PROBLEM AND ITS BACKGROUND
Introduction
•Financial management is handling of financial situation in a
responsible manner to achieve financial independence.
•It also deals with managing money in all areas of life as it
includes personal financial management and organization
management.
•Personal financial management is managing the finance of home
which includes budgeting, saving, investing, debt management
and other aspects related to personal money where by an
individual can achieve personal goals and plan for retirement.

3. •Dealing with personal finances can be stressful and have a
negative impact in life like personal relationships, overall health
and monetary worries.
•One way to alleviate stressors in personal finances is to work
on gaining financial wellness.
•In the Philippines, many Filipinos still do not have cash on hand
for emergencies and only twenty (20) percent of Filipino
households have bank accounts.
•Retirement planning is also lacking and why so many
households arrive close to retirement with little or no wealth.

4. Background of the Study
•More Filipinos have been attracted in achieving several kinds of
wellness including the physical, mental, spiritual aspects and lastly
financial wellness.
•The Global Aging Institute and Pru Life UK revealed and shown
that in the Philippines, about 9 in 10 or 90% of Filipino workers lie
awake at night wondering how they can stretch their money when
they retire.
•Majority of Filipino workers today are very anxious about
exhausting their savings, being in poor health, and having no one
to care for them or being a burden on their children when they
retire.

5. •Philippines was second to Vietnam (95%) in terms of being
•anxious on retirement prospects.
•The Education Undersecretary for Finance Victoria Catibog,
•stated that more than twenty three thousand (23,000) of the
•department’s retirees, both teachers and nonteaching staffs are
•not able to get anything from their retirement because they had
unpaid loans due to poor management of their finances.
•Retirement here in the country is not what it looks like on
television commercials, where the elderly are enjoying relaxed
lifestyle, strolling on the beach and travelling abroad.

6. Review of Literature
Financial Wellness
•Financial wellness was focused on controlling and tracking
finances, while being able to have both financial freedom and
security (Rappaport, A. 2017).
•DCIIA, 2017 defined financial wellness from an employee’s
perspective as the ability to meet ongoing financial responsibilities
while following a plan to create a secure financial future.
•The key components of financial wellness are objective financial
status, financial knowledge, financial attitudes, financial
satisfaction, and financial behaviors were found to be associated
with the intention to engage in retirement planning activities.
(Spann S., 2014)

7. Objective Financial Status
•According to Joo, S. (2008), the term objective financial status
refers to quantitative measures of a person’s financial health.
•Financial wellness is often associated with income which has
been the most common measure of financial status.
•Other objective financial measures include financial ratios related
to savings, asset allocation, liquidity, solvency, and investment
assets ratio (Garrett & James, 2013).
•Higher levels of income and greater total assets lead to a greater
sense of financial wellness. (Joo, 2008; Xiao, & Shim, 2009).

8. Financial Behavior
•Multitudes of behaviors with outcomes possibly affect financial
wellness. According to Woodyard, A. (2013),examples of behaviors
considered to be positive include cash management, holding
emergency savings, moderating credit, planning for long-term
goals such as retirement, managing risks through purchasing
insurance, having wills and other estate documents in place.
•Financial behaviors can be both positive and negative, were
measured by a series of variables meant to indicate proactive
consumer behavior. (Woodyard, A. 2016)
•The financial behaviors associated with saving for retirement are
also related to retirement confidence. (Spann, S.,2014)

9. Financial Satisfaction
•Financial satisfaction is a subcomponent of overall well-being
(Plagnol, 2011) and focuses on similar elements of general well-
being such as being worry-free (Joo, 2008).
•Well-being is a term that encompasses an individual’s
contentment, satisfaction, or happiness with their situation (Mc
Dowell, 2010).
•Seeing that, retirees face numerous decisions regarding the use
of their income and assets to manage ongoing expenses and
debt payments in retirement, the outcome of which has a direct
impact on their well-being.

10. Subjective Perception
Financial Knowledge
•Financial knowledge is a particular kind of human capital that is
acquired throughout the life cycle, by learning subjects that affect
the ability to effectively manage revenues, expenses, and savings
(Delavande, Rohwedder, & Willis, 2008)
•VanRooij et al. (2011) also showed several measures of financial
knowledge such as knowledge of retirement savings, knowledge of
financial products, financial general knowledge, mathematical
knowledge, and a subjective assessment of participants’ financial
knowledge that numeracy is related to successful retirement
planning.

11. Financial Attitude
•Financial attitude is a component of financial wellness and is
related to subjective perceptions of financial health.
•Financial attitudes observed in previous financial wellness studies
include financial stress, financial anxiety, debt-related attitudes,
and optimism. (Archuleta et al., 2013).
•There were three were attitudinal statements focusing on
attitudes towards money, and particularly towards planning f
or the future (Atkinson, A. 2012).
•(Firli, A.,2017) identified that attitude is a measures of attitude
towards money and financial responsibility.

12. Retirement Preparedness
•Retirement preparedness is the state and/or degree of being
ready for retirement.
•Retirement preparedness usually refers to being financially ready
for retirement, or the degree to which an individual aspiration is to
meet his retirement-income goals so that the standard of living
enjoyed while working will be sustained after retirement (https://
www.investopedia.com/terms/r/retirement-readiness.asp).
Retirement planning start to create a systematic approach for
developing good habits for accumulating money, skills and
attitudes that will serve a lifetime. (Shank, H)

13. Financial Roadmap
•It is a roadmap that helps defining financial life goals and provides
the tools, information and structure necessary to organize finances
and make the most of the money one have.
•The financial roadmap process is an intellectually interesting and
emotionally rewarding experience that highlights the awesome
responsibility to achieve a solid road to financial freedom.

14. Demographic Profiles
•Demographic factors are the most commonly determinants of
financial wellness. Some of the most frequently demographic
characteristics associated to financial wellness include age,
gender, marital status, education ethnicity, income and
homeownership (Spann, S 2014).
•The study of Karpas et. al. (2014), entitled “Perceived Financial
Retirement Preparedness and Its Correlates: A National Study in
Israel” included variables such as income, wealth, age, gender,
educational level ethnicity, marital status, number of children, and
number of persons in the household that deemed relevant for
financial retirement preparedness.

15. Statement of the Problem
The study aims to determine the financial wellness for
retirement preparedness among employees of Local Government
Unit in Batangas City.
Specifically, this aims to answer the following:
1. What is the demographic profile of the respondents in terms of:
1.1 age;
1.2 sex;
1.3 educational attainment;
1.4 civil status;
1.5 position/level; and
1.6 annual income?

16. 2. How may financial wellness of retiring employees be assessed
in terms of:
2.1 objective financial status;
2.2 financial satisfaction;
2.3 financial behaviors; and
2.4 subjective perceptions?
2.4.1 financial knowledge
2.4.2financial attitudes
3. Is there a significant difference in the financial wellness of
respondents when grouped according to profile variables?
4. Based on findings, what financial roadmap may be proposed?

17. Theoretical Framework
Joo’s (2008) Financial Wellness Model
RESULTS

18. Conceptual Framework
Profile of Retiring
Employees
 Age
 Sex
 Educational
attainment
 Civil status
 Position level
 Annual income
Components of Financial
Wellness
 Objective Financial
Status
 Financial Satisfaction
 Financial Behaviors
 Subjective
Perceptions
 Financial Knowledge
 Financial Attitude
Data Assessment Using
Survey Questionnaire
Proposed Financial
Roadmap
INPUT PROCESS OUTPUT
Conceptual Paradigm on Financial Wellness for Retirement Preparedness among Employees of Local Government Unit in Batangas City

19. Hypothesis of the Study
•Ho: There is no significant difference in the financial wellness of
respondents when grouped according to profile variables
Scope and Delimitation of the Study
•The respondents of the study are the 177 retiring employees in
Batangas City with age ranging from fifty (55) to sixty five (65)
years old.
•Gathering of pertinent data will be on January to May 2019.
•Descriptive Research Method
•The study will not cover all the employees of Local Government
Unit in Batangas City since this research only focused on
retirement preparedness of retiring employees.

20. Significance of the Study
•To the retiring employees
•To the Human Resource Office of Local Government Unit of
Batangas City
•To the Local Government Unit of Batangas City
•To other Local Government Unit of Batangas
•To the academe
•To the researcher
•To the future researchers

21. METHODOLOGY
Research Design
•The descriptive method of research will be used in this study. It
describes with emphasis what actually exists such as current
conditions, practices, situations, or any phenomena.
Population and Sampling
•The entire populations of permanent employees of Local
Government Unit in Batangas City are 1,617.
•There are 324 employees with age bracket of 55 – 65 years old as
provided by Human Resource Management & Development Office.
•The sample size of 177 retiring employees are considered as the
participants of the study.

22. Participants of the Study
Employees of Local Government Unit in Batangas City
Age 55 – 65
n = 177
Age 55-65 Total Number of Employees Sample Size
55 45 24
56 52 28
57 40 22
58 49 27
59 42 23
60 33 18
61 18 10
62 23 13
63 13 7
64 9 5
65 0 0
TOTAL 324 177

23. Research Instrument
•Self constructed questionnaire
•First part shows the profile of the respondents in terms of age, sex,
educational attainment, civil status, position/level and annual income.
•The second part deals with components of financial wellness in terms
of objective financial status, financial behavior, financial satisfaction and
subjective perception with sub-components of financial knowledge and
financial attitude.
•Likert Scale
•Scale Range Verbal Interpretation
•4 3.26-4.00 Strongly Agree (SA)/Highly Prepared
•3 2.51-3.25 Agree (A)/Prepared
•2 1.76-2.50 Disagree (D)/Very Low Prepared
•1 1.00-1.75 Strongly Disagree (DS)/Unprepared

24. Validation of Instrument
•The questionnaire will be validated by the adviser, panel of
examiners, and the statistician to check the face and content
validity
Data Gathering Procedure
•Supplementary materials and trusted internet websites for
business journal and published materials
•Preparation and validation of survey questionnaire
•Dry run and reliability testing
•Actual survey
•Retrieval and tabulation of the results
•Analysis and interpretation

25. Statistical Treatment
•Percentage
•Weighted Mean
•One way analysis of variance

26. THANK YOU
Presented by:
Anna Liza H. Manalo
Adviser:
Prof. Jay P. Mercado