CONTRIBUTORY PENSION SCHEME AND CONSUMPTION DECISIONS OF NON-DURABLE GOODS AMONG RETIRED FEDERAL CIVIL SERVNATS IN ANAMBRA STATE, NIGERIA

Resumen

The neglect suffered by retirees recently and the attendant consequences necessitated this research aimed at investigating the impact of contributory pension schemes on post-retirement consumption decisions of non-durable goods of retired federal civil servants in Anambra State.  A sample of 500 respondents was drawn from two communities in the state, each from two local government areas of each senatorial zone of Anambra State, through stratified random sampling technique and purposive sampling technique, respectively. A test of the reliability of the research instruments was done using the Cronbach Alpha test statistic on a sample of 50 respondents for pilot testing which shows that it is more significant than 0.7, indicating that the research instruments were reliable. Data for the study were analysed using descriptive statistical tools and logistic regression techniques. Significant findings indicate that contributory pension scheme savings have a likelihood of positive and significant contributions to the consumption of non-durable goods. Similarly, further findings also indicate that higher education, higher income level, large family size, socio-economic responsibilities, unemployment, high-income level and poor health status are factors that have the likelihood of significantly influencing post-retirement consumption of non-durable goods in Anambra State. The study recommends, amongst others, the payment of living wage to workers to enable them to save and invest while still in active service so as not to depend solely on their contributory pension scheme when retired.

JEL: J26, H55, D12, G22, I38, C83, D14, J14

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