The Saving for Retirement Practices of Certified Public Accountants in the National Capital Region

Abstract

The study aimed to assess the extent of the practice of the saving for retirement practices of Certified Public Accountants in the National Capital Region using a descriptive survey method. Majority of the 389 respondents were aged 24-30 years old, female, single, have baccalaureate degrees, average monthly income of 31,000-40,000, around 3 -9 years as CPA and saving for retirement for less than one year. The three aspects considered were Retirement Goal Clarity, Retirement Planning Activities, and Financial Products Preferences. Retirement goal clarity resulted as practiced while the other two aspects were somewhat practiced. When grouped according to average monthly income and number of years saving for retirement, the extent of practice was generally with a significant difference. In contrast, according to sex, it was usually with no significant difference. When grouped according to age, highest educational attainment and the number of years as CPA, the extent of practice was dominant with significant difference except for financial product preferences aspect. Meanwhile, when grouped according to civil status, it was dominantly with substantial difference except for retirement goal clarity aspect. Based on the findings and conclusions drawn, it is recommended that respondents discuss plans for retirement with loved ones, and they learn more about investment vehicles. Also, financial advisers must capitalize on helping their clients think on goals such as how much will be needed for retirement and future needs. Furthermore, educational institutions must promote financial literacy. Human resource development should conduct personal financial management training and workshop for employees. The young professionals need to find ways to increase cash flow. Also, starting to save early for retirement, and investing in the right investment product will maximize wealth due to the time value of money, high return from a high-risk asset and long-term horizon. For the employers, they must initiate a voluntary retirement fund to increase savings.