Effect of Psychological Preparedness on Pre-Retiree Retirement Planning Behaviour: A Case Study of Employees of The County Government of Nakuru, Kenya
- June 17, 2022
- Posted by: rsispostadmin
- Categories: IJRISS, Psychology, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue V, May 2022 | ISSN 2454–6186
Rose Walubengo1, S Kipchumba2
1MHRM student, Egerton University, Faculty of Commerce, Business Administration Department, Kenya.
2Lecturer, Egerton University, Faculty of Commerce, Business Administration, Department, Kenya.
Abstract: Retirement is a period of major changes with diverse consequences in the lives of employees depending on the level of planning and preparedness. Initially, studies focused more on the post-retirement period. However, recently, there has been a shift towards retirement preparedness and planning. In addition, financial aspects dominated retirement planning at the expense of psychological and social preparedness that also play an integral part in the process. This is despite abundant evidence of adverse psychological consequences that characterize pre-retirement and post-retirement stages. Therefore, in addition to finance, it is important to assess the effect of the various constructs of psychological preparedness on pre-retiree retirement planning behavior. This study sought to assess the effect of psychological preparedness on pre-retirees’ retirement planning behavior using a case study of the County Government of Nakuru, Kenya. Specifically, the study sought to: determine the effect of future time perspective, retirement goal clarity, perceived financial knowledge, financial planning activity level and perceived savings adequacy on pre-retirees’ retirement planning behaviors of pre-retirees in the County Government of Nakuru, Kenya. The study adopted a case study research design. The target population included the 419 employees at the County Government Head Quarters in Nakuru town in the year 2019. A random sample of 116 employees was selected and included in the study. The study conducted quantitative data analysis using descriptive and inferential statistics with the aid of the Statistical Package for Social Sciences version 25.0 for Windows. The study found out that psychological preparedness significantly influences retirement planning behaviors. However, the level of financial planning activity and goal clarity were the most important dimensions of psychological preparedness.
Key Words: Retirement planning, Goal clarity, Financial knowledge, Financial planning,
I.INTRODUCTION AND BACKGROUND OF THE STUDY
Retirement is an inevitable, integral part and a period of major changes in the lives of individual employees in private and public sectors (Atchley, 1998, 1988). This has two faces including positive aspirations for life after work associated with leisure and freedom; and negative consequences associated with fears over economic security (Mutuku, 2004). The positive aspirations offers opportunity to escape work obligations, pursue own passions, create time and opportunity
