Investigating the process of retirement planning among start-up entrepreneurs of the Global South

This study investigates institutional and individual factors that influence decisions of small and medium size entrepreneurs in the global south to make and implement retirement plans in the absence of companies sponsored arrangements. Empirics are based on survey data on small business owners operating in Lagos city, Nigeria. Data collection took place from 2019 to 2021. The study used cluster analysis to profile respondents and applied multinomial analysis to make sense of the data. Findings reveal distinctive profiles, such as (1) “No plan,” (2) “Savings,” (3) “Pension/Insurance,” (4) “Children and others,” and (5) “Property and Stocks.” Age, gender, Marital status, level of education, and income were differentially related to each profile. Precisely, the study finds that self-employed/small business owners’ decision to plan for retirement is dependent on five factors: current income/earnings from business, age, religion, level of education, and level of risk tolerance. Our findings are important to policy makers and other stakeholders interested in reducing poverty, tackling precarious works and ensuring decent jobs.