An Assessment of Adequacy of Pre-Retirement Savings for Sustainable Retirement Income under the Nigerian 2014 Pension Scheme

• Autorzy: Ashim Babatunde Sogunro , Ismail Adedeji Adeleke , Richard Olusegun Ayorinde
• Języki publikacji: EN

Abstrakty

EN

Aim/purpose - The main objectives of this article are to estimate percentage of preretirement savings that is needed, based on the current salary scale, to sustain academic and non-academic staff of Federal Universities in Nigeria in retirement using University of Lagos as a case study. Design/methodology/approach - The methodology of the article was designed by modifying the life-cycle model of household behaviour combine with the target replacement ratio benchmarks for different income levels as used by Pension Commission 2004, expressed in 2013 earning terms. Finding - The research findings show that the lowest income earner with entry age of 25 years and retirement age of 65 years should, without any interruption throughout the service years, contribute a minimum of pre-retirement savings of 28.01% on an annual basis from his or her emolument to maintain the pre-retirement standard of living once he/she has ceased working. Research implications/limitations - The scope of this research study is subjected to some limitations: (1) scarcity of pension financial data in Nigeria; (2) the academic and non-academic staff of Federal Universities in Nigerian using University of Lagos as a case study. Originality/value/contribution - The study has established the minimum contribution rate into the Retirement Savings Account so as to meet the internationally acceptable replacement ratio for employees of the Nigerian Federal Universities.(original abstract)

Słowa kluczowe

EN

Retirement savings; Pension systems in the world; Higher education

PL

Oszczędności emerytalne; Systemy emerytalne na świecie; Szkolnictwo wyższe

• Czasopismo: Journal of Economics & Management / University of Economics in Katowice
• Rocznik: 2019
• Numer: nr 35
• Strony: 150--171

Twórcy

autor

Ashim Babatunde Sogunro

• University of Lagos, Akoka-Yaba, Lagos, Nigeria

autor

Ismail Adedeji Adeleke

• University of Lagos, Akoka-Yaba, Lagos, Nigeria

autor

Richard Olusegun Ayorinde

• University of Lagos, Akoka-Yaba, Lagos, Nigeria

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Identyfikatory

DOI

10.22367/jem.2019.35.08