Preparations of Ghanaian Formal and Informal Sector Workers Towards Retirement
Date
2017-07
Authors
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Journal ISSN
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Publisher
University of Ghana
Abstract
The study sought to compare retirement preparation among formal and informal sector workers.
The study’s objectives are to: provide an overview of existing policies on retirement planning,
profile state and other corporate institutions’ role in retirement planning, investigate formal and
informal sector workers’ retirement aspirations and retirement planning information sources,
articulate formal and informal sector workers’ instituted retirement plans and explore challenges
encountered. Using explanatory sequential mixed methods, qualitative and quantitative datasets
were collected from institutions and individual workers utilising key informant and in-depth
interviews and survey. The datasets were managed and analysed using Nvivo and SPSS. The
findings indicate that pension policy fosters a conducive enabling environment for retirement
preparation. Formal sector workers anticipate retiring early, dependence on pension income, lump
sum and paid work beyond retirement. Informal sector ones expect reliance on investment income,
susu and children. Planning information was obtained from organisations, family and friends, yet
awareness about the national pension system was poor among workers, especially the informal sector. Income facilitates retirement planning. Approximately 86% of the respondents were
planning for retirement. Formal sector plans were financial and informal ones were semi-financial
in nature. The implication of the resolution of industrial action in relation to pension fund
management and salary increment cannot be ignored. Formal workers are well prepared for
retirement compared to their informal sector workers. Occupational benefits may supplement
individual plans. In conclusion, the study’s outcome has implications for the realisation of
workers’ retirement goals, adequate planning knowledge, salary increment has effects on further
retirement investments. Pay review using job evaluation which yields pay that is commensurate to
work demands is recommended.
Description
PhD.
Keywords
Formal, Informal, Sector Workers, Retirement