Adjustment towards Retirement

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In all 114 respondents were randomly selected from the various departments in the public sector in the Dormaa Municipality to serve as participants in a non-experimental survey. It takes considerable time and a resource to prepare an individual to enter employment just as the individual has to be prepared to leave employment when one is due for retirement. Many retirees in developing countries including Ghana do not have decent retirement life. This is because most Ghanaian workers and their employers do not prepare for this new phase of life. This explains why many retirees in Ghana live destitute life without having accommodation for themselves. In the developed economies one’s letter of appointment also states his /her retirement date. This makes it easier for workers to be better prepared to adjust towards retirement. Since this is not done in developing countries, it makes it difficult for workers to adjust their life lifestyles when they are approaching retirement. In Ghana, there is often no clear cut policy on retirement planning. It is in view of this, that this study was undertaken in the Dormaa Municipality. The main objective of this research is to find out how the Ghanaian worker adjusts towards retirement in terms of finance, health, accommodation and leisure. The statistical package for social science (SPSS) and a logistical regression model were used to analyse the data which was obtained through the use of structured and unstructured questionnaire. Generally, the workers in the Dormaa Municipality were found to adjust better towards retirement. They were therefore found to be well prepared for retirement. However, whereas the males were better prepared in accommodation, the females were better prepared financially. It was concluded that most Ghanaian workers are aware of retirement, yet little is done about it in terms of preparation and adjustment. Various recommendations were given with regard to how adjustment towards retirement could be done. It is also recommended that the new pension should be fully implemented to ensure that the first beneficiaries of the new pension scheme would not suffer since nothing has been heard about the second and third tier which is expected to enhance the non-taxable cash lump sum of the prospective retirees. The retirement date of all workers should be attached to their appointment letters. Furthermore, all the public education of SSNIT officials should first target the employers. This public education should be done for all workers when they have between 15 and 10 years to retire. This would make the public education effective and beneficial to all who would attend them.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the Commonwealth Executive Master of Business Administration (CEMBA),