ROLES OF PENSION AND RETIREE’S STANDARD OF LIVING

ABSTRACT

This research work examined roles of pension and retiree’s standard of living. The specific objectives were to determine the extent to which the new pension scheme has improved the welfare of the retired employee in Nigeria, to determine the relationship between pension and standard of living of retired employee, to examine the extent to which the new pension scheme can guarantee a minimum living standard for the retired civil servants in Nigeria and lastly to evaluate the extent to which the new Pension Act 2004 addressed the problem of fund diversion, corruption and inadequate budgetary allocation. In order to achieve these objectives, the study adopted quantitative research design while the population was civil servant retirees of federal institutions. The sample size was 100 selected civil servant retirees of federal institutions which will comprise of both male and female obtained using simple non probability sampling technique. Chi-square statistical tool was used as the statistical tool for testing the postulated hypotheses. Findings showed that that new pension scheme would be able to increase the standard of living of retired civil servants in Nigeria. Finally, that the new Pension Act 2004 will significantly address the problem of fund diversion, corruption and inadequate budgetary allocation. It was therefore recommended PENCOM must ensure that the administrators and custodians abide by the rules of the pension game in order to ensure their efficient and effective performance. Also The public must be regularly enlightened and adequately keep abreast of development in the pension industry by the Commission and the administrators.

TABLE OF CONTENTSPagesTitle Page i Certification iiDedicationiiiAcknowledgmentsivAbstractvTable of Contents viList of TablesviiiCHAPTERONE1.1Background of the Study11.2Statement of the Problem31.3Aim and Objectives of the Study41.4Relevant Research Questions41.5Relevant Research Hypotheses51.6Significance of the Study51.7Scope of the Study61.8Definition of Terms6References8CHAPTER TWO: LITERATURE REVIEW 2.1 Preamble92.2 Theoretical Framework112.3The Concept of Retirement 153 2.4Divisions of the Pension Scheme 212.5The Contributory Pension 302.6Investment of Pension Fund 36References38CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Preamble443.2 Research Design 443.3 Population of Study 443.4 Sampling Procedure and Sample size 443.6 Data Collection Instrument and Validation453.7 Method of Data Analysis45 3.8 Limitation of Methodology45References47CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS4.1 Preamble484.2 Presentation and Analysis of Data 534.3Test of Hypotheses59References63CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS5.1 Summary 635.2 Conclusion 655.3 Recommendations 66Bibliography 684

Appendix75