Factors affecting formal saving for old age among women (45- 60) in the informal sector in Uganda

Abstract

This study investigated the factors influencing formal saving for old age among women aged 45-60 in the informal sector in Uganda. A cross-sectional research design was used in the study and convenience sampling was performed to select a sample from target population of women in the informal sector. Data was collected from a sample of 100 women using a structured questionnaire. The study focused on socio-demographic and economic characteristics, saving habits, financial obligations, financial literacy, and perceived financial preparedness for old age. Data analysis was performed at univariate, bivariate and multivariate level to assess the effect of the variables on formal old age saving. The results from data analysis indicated that less than half of the women had formally saved for old age (47%). More than half of the women studied were self-employed (56%) and the rest were employed in various informal businesses (44%). Less than half of the women had completed financial courses (46%), while more than two thirds of them were financially supporting their relatives (71%). Regression analysis revealed that women who felt prepared for old age were over four times more likely to save formally for old age than those that felt unprepared (OR = 4.10). Women who supported relatives were 68% less likely to save formally for old age compared to those who did not (OR = 0.32). Self-employed women had 58% lower odds of saving formally for old age compared to those who were employed (OR = 0.42). Additionally, women who had worked in their businesses for over ten years were four times more likely to participate in formal old age saving compared to those with shorter work tenures (OR = 4.14). The findings highlighted the importance of financial literacy and stable employment in promoting formal old age saving among women in the informal sector. The recommendations drawn from the study thus included enhancing financial education to boost financial literacy among women in the informal sector, providing special support for women with significant financial obligations such as high cost of child education, and improving access to formal financial services among women in the informal sector in Uganda.