MANDATORY RETIREMENT AGE AND PENSION SYSTEM IN KWARA STATE, NIGERIA

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Date

2018-08-01

Journal Title

Journal ISSN

Volume Title

Publisher

Journal of Research in National Development

Abstract

The primary aim of the Mandatory Retirement Age (MRA) is to reduce the cost of pension liabilities and the recurrent expenditure on ageing workforce whose productivity has reduced. Couple with inconsistent results in previous studies, the study examined the influence of MRA on pension system in Kwara state, Nigeria. Extensive review of literature were done on the current developments about mandatory retirement age, employment and unemployment and pension system that constitute the model of this study. Descriptive survey design method was employed and the study used simple random sampling technique to select a total number of 400 civil servants from Kwara state. Primary and secondary data were used. Data obtained were analyzed and presented using both descriptive and inferential statistics. Multiple regression analysis were employed to analyze relationships among construct variables. The results indicate that correlation coefficient (R) and R-square to be 0.628 and 0.556 respectively. This explains that, mandatory retirement age has relationship with the employment generations and unemployment situation in the country as the level of employment generation accounted for approximately 63% of an increase in MRA and the rate of unemployment accounted for 56% approximately of a factor that related to MRA. The study concluded that, MRA can be used for employment generation opportunities (at least an equivalent numbers in form of replacement) if the number of civil servants that are due for retirement in a closer future are identified by government. It is recommended that Government should acquire and host a database for civil servants and unemployed youth so that there will be a network relationship between the relevant ministries that will ensure that salaries are automated to stop on due date for retirement while that of fresh appointment is activated.

Description

Nigeria. Journal of Research in National Development is a Publication of the Department of Maritime Management Technology, Federal University of Technology, Owerri

Keywords

Mandatory Retirement Age, Labour Market, Employment, Unemployment, Public Sector, Nigeria

Citation

Shadare, O.A. & Aliyu, M.O. (2018). Mandatory retirement age and pension system in Kwara state, Nigeria. A Publication of the Department of Maritime Management Technology, Federal University of Technology, Owerri, Nigeria. Journal of Research in National Development, 16(1), 231-243

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