The Moderating Effect of Self-control on the Relationship between Financial Knowledge and Retirement Planning among Commercial Bank Employees in Eldoret Town, Kenya

Retirement planning is a goal-oriented behavior where individuals devote effort to prepare for their retirement life effectively, thus reducing retirement worry, keeping stress under wraps, and enhancing retirement preparedness and confidence. However, there is little literature about retirement planning among employees working in Kenyan commercial banks. To fill this gap, this study aimed to establish the moderating effect of self-control on financial knowledge and retirement planning among commercial bank employees in Kenya. This study was guided by goal setting, social cognitive, and behavioral life cycle theories. The study adopted an explanatory research design, with data being collected from a target population of 1058 employees of 32 commercial banks in Eldoret town using a closed-ended questionnaire. A sample size of 290 respondents was obtained using Yamane’s formula. The study used simple random sampling techniques to sample the commercial banks, and thereafter the researcher used systematic sampling techniques to select employees as respondents. The study hypotheses were tested using a hierarchical regression model. Results reveal that financial knowledge had a significant positive impact on retirement planning (β =.626, P =.000), confirming that employees with better financial knowledge are more likely to plan effectively for retirement. Similarly, self-control not only directly influences retirement planning (β = .258, P =.000) but also moderates the relationship between financial knowledge and retirement planning (β =.137, P =.000). Results further indicate that the moderation model is a superior model than the direct effect model as it accounts for more variance (60.5%) in retirement planning as shown by R² =.605 compared to 44.9% (R² =.449). This moderation process contributes to new knowledge in literature and theory. These study findings will be helpful to organizations and governments in developing policies and strategies related to retirement systems in the workplace. Limitations and recommendations have also been discussed.