Who are the most financially literate government employees? In which states are government servants most financially aware? Which age-group among government staff are most financially literate and which are the least?
According to a financial literacy and National Pension System (NPS) awareness survey conducted by the Pension Fund Regulatory and Development Authority (PFRDA) among government employees, financial literacy is highest among NPS subscribers from Central Autonomous Bodies (CAB), followed by Central Government subscribers, State Autonomous Bodies (SAB) subscribers. The lowest awareness is among State Government subscribers who participated in the survey.
Among states, Gujarat, Himachal Pradesh, Uttaranchal and Punjab were among the high financial literate states while North- Eastern states like Arunachal Pradesh, Manipur, Meghalaya, and Nagaland were found to be low in financial literacy.
In the various age groups, financial literacy is high for the participants in age group of 36-40, 41-45, 46-50 years and is lowest for 18-25 year age group.
The survey found that 29 per cent of male subscribers and 19 per cent of female subscribers who participated in the survey have high financial literacy. Among those surveyed, 30 per cent of female subscribers and 23 per cent of male subscribers who participated in the survey have low financial literacy.
A total of 10,111 Government employees participated in the survey which included 5075 Central Goverment/CAB employees and 5036 State Government/SAB employees. To assess the level of financial literacy and NPS awareness of government employees, an online survey was conducted by PFRDA, in co-ordination with the Central Record-keeping Agency (CRA) between July 14 and August 18, 2016.
The PFRDA questionnaire was grouped into two parts – Part A to assess the knowledge of finance and Part B to assess the awareness on NPS. Three questions in the survey were based on attitude.
If the score of the respondents was equal or more than 75 per cent, the respondents are assessed as ‘high’ in financial literacy. If the score of the respondents was equal or more than 50 per cent but less than 75 per cent, the respondents are assessed as ‘average’ and if the composite score of the respondents is less than 50 per cent, the respondents are assessed as ‘low’ in financial literacy.