Abstract:
Financial literacy enables individuals to plan for job exit and retirement, make proper choices on
pension products and contribute effectively in management of their pension schemes. The
objective of this study was to determine the influence of retirement scheme knowledge on job
exit preparedness of employees in hospitals in Nakuru town, Kenya. The study was anchored on
the Prospect Theory. The study adopted descriptive survey. The target population included
employees in 15 hospitals in Nakuru town which have a total of 2221 employees. A sample of 96
respondents was selected as the respondents. Questionnaires were used for data collection.
Questionnaires were tested for validity and reliability. Data was analyzed using descriptive
statistics and inferential statistics and presented in tables accompanied by relevant discussions.
The researcher established that retirement scheme knowledge had a significant relation with job
exit preparedness. In this regard, the study concluded that retirement scheme knowledge had a
crucial role in determining job exit preparedness of employees in hospitals in Nakuru Town. The
study recommended that in regard to retirement scheme knowledge the employers should ensure
that financial literacy programs and workshops be offered and conducted with comprehensive
information on savings and more specifically on retirement be emphasized.
