IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 9 2024
DOI: 10.56201/jafm.v10.no9.2024.pg327.343

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Effect of Contributory Pensions Scheme on Welfare of Retirees in Nigeria

Emetaram, Ezenwa

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Abstract

Pensioners in Nigeria face significant challenges when attempting to access their retirement benefits through the contributory pension scheme. Issues such as delays in the disbursement of pensions and gratuities, along with frustrations encountered during screening processes, adversely affected the welfare of pensioners. This study investigates the effect of the contributory pension scheme on the post-retirement lives of civil servants in Anambra State. A multi-stage sampling technique was employed to distribute questionnaires to 170 respondents, and in-depth interviews were conducted with three key participants. Findings indicated a significant correlation between the distribution of monthly pensions and the fulfilment of retirees' welfare needs. Also, a strong association was found between monthly pension amounts and the household size of retirees. The in-depth interviews highlighted several challenges facing the contributory pension scheme, including inadequate retirement preparation by pensioners, delayed payment of retirement benefits, corrupt practices among pension managers, and the government's reluctance to adjust pension amounts. In conclusion, the provisions of the contributory pension scheme were found to be inadequate in meeting the welfare needs of retirees in Anambra State. It recommends on the need for targeted policies that consider household size in pension planning as well as create supplementary support systems or increase pension allocations for larger households that could help alleviate financial pressures and improve overall welfare of the retirees in Nigeria.

keywords:

Pension, Gratuity, Contributory Pension Scheme, Retirees’ Welfare

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