IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i5p679-692.html
   My bibliography  Save this article

Effect of Psychological Preparedness on Pre-Retiree Retirement Planning Behaviour: A Case Study of Employees of The County Government of Nakuru, Kenya

Author

Listed:
  • Rose Walubengo

    (MHRM student, Egerton University, Faculty of Commerce, Business Administration Department, Kenya.)

  • S Kipchumba

    (Lecturer, 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.

Suggested Citation

  • Rose Walubengo & S Kipchumba, 2022. "Effect of Psychological Preparedness on Pre-Retiree Retirement Planning Behaviour: A Case Study of Employees of The County Government of Nakuru, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 679-692, May.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:5:p:679-692
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-5/679-692.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/effect-of-psychological-preparedness-on-pre-retiree-retirement-planning-behaviour-a-case-study-of-employees-of-the-county-government-of-nakuru-kenya/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Annamaria Lusardi, 2003. "The Impact of Financial Education on Savings and Asset," Working Papers wp061, University of Michigan, Michigan Retirement Research Center.
    2. Alan L. Gustman & Thomas L. Steinmeier, 2000. "Retirement Outcomes in the Health and Retirement Study," NBER Working Papers 7588, National Bureau of Economic Research, Inc.
    3. Pecchenino, Rowena A., 2011. "Preferences, choice, goal attainment, satisfaction: That's life?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 237-241, May.
    4. van Dalen, H.P. & Henkens, K. & Hershey, D.A., 2008. "Are Pension Savings sufficient? Perceptions and Expectations of American and Dutch Workers," Discussion Paper 2008-58, Tilburg University, Center for Economic Research.
    5. Hershey, D.A. & Henkens, C.J.I.M. & van Dalen, H.P., 2010. "What drives retirement income worries in Europe? A multilevel analysis," Other publications TiSEM 4c3fd750-794a-47d2-aede-a, Tilburg University, School of Economics and Management.
    6. Elder, Harold W. & Rudolph, Patricia M., 1999. "Does retirement planning affect the level of retirement satisfaction?," Financial Services Review, Elsevier, vol. 8(2), pages 117-127.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Begley, Jaclene & Chan, Sewin, 2018. "The effect of housing wealth shocks on work and retirement decisions," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 180-195.
    2. Philip Trostel & Ian Walker, 2006. "Education and Work," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 377-399.
    3. Bender, Keith A., 2012. "An analysis of well-being in retirement: The role of pensions, health, and ‘voluntariness’ of retirement," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 424-433.
    4. Arthur Van Soest & Hana Vonkova, 2014. "How Sensitive Are Retirement Decisions To Financial Incentives? A Stated Preference Analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(2), pages 246-264, March.
    5. Giles, John & Lei, Xiaoyan & Wang, Gewei & Wang, Yafeng & Zhao, Yaohui, 2023. "One country, two systems: evidence on retirement patterns in China," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(2), pages 188-210, April.
    6. Nicole Maestas & Julie Zissimopoulos, 2010. "How Longer Work Lives Ease the Crunch of Population Aging," Journal of Economic Perspectives, American Economic Association, pages 139-160.
    7. Lieze Sohier, 2019. "Do Involuntary Longer Working Careers Reduce Well-being?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(1), pages 171-196, March.
    8. Martin Salm, 2010. "Subjective mortality expectations and consumption and saving behaviours among the elderly," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 1040-1057, August.
    9. Giles, John & Wang, Dewen & Cai, Wei, 2011. "The labor supply and retirement behavior of China's older workers and elderly in comparative perspective," Policy Research Working Paper Series 5853, The World Bank.
    10. George Apostolakis & Gert Dijk, 2018. "Retirement concerns and planning of cooperative members: a study in the Dutch healthcare sector," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(4), pages 209-224, October.
    11. Papke, Leslie E., 2019. "Retirement choices by state and local public sector employees: the role of eligibility and financial incentives," Journal of Pension Economics and Finance, Cambridge University Press, vol. 18(4), pages 515-528, October.
    12. Lahey, Karen Eilers & Kim, Doseong, 2001. "Longitudinal changes in net worth by household income and demographic characteristics for the first three waves of the HRS," Financial Services Review, Elsevier, vol. 10(1-4), pages 55-73.
    13. Chang Liu & Xue Bai & Martin Knapp, 2022. "Multidimensional Retirement Planning Behaviors, Retirement Confidence, and Post-Retirement Health and Well-Being Among Chinese Older Adults in Hong Kong," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 833-849, April.
    14. Yuriy Gorodnichenko & Jae Song & Dmitriy Stolyarov, 2013. "Macroeconomic Determinants of Retirement Timing," NBER Working Papers 19638, National Bureau of Economic Research, Inc.
    15. Erik Hurst, 2004. "Grasshoppers, Ants and Pre-Retirement Wealth: A Test of Permanent Income Consumers," Working Papers wp088, University of Michigan, Michigan Retirement Research Center.
    16. Youngwon Nam & Cäzilia Loibl, 2021. "Financial Capability and Financial Planning at the Verge of Retirement Age," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 133-150, March.
    17. David E. Bloom & David Canning & Michael Moore & Younghwan Song, 2007. "The Effect of Subjective Survival Probabilities on Retirement and Wealth in the United States," Chapters, in: Robert L. Clark & Naohiro Ogawa & Andrew Mason (ed.), Population Aging, Intergenerational Transfers and the Macroeconomy, chapter 4, Edward Elgar Publishing.
    18. Andrew E. Clark & Yarine Fawaz, 2009. "Valuing Jobs Via Retirement: European Evidence," National Institute Economic Review, National Institute of Economic and Social Research, vol. 209(1), pages 88-103, July.
    19. Lorenzo Burlon & Montserrat Vilalta-Buf�, 2014. "Technical progress, retraining cost and early retirement," Temi di discussione (Economic working papers) 963, Bank of Italy, Economic Research and International Relations Area.
    20. Ross Stolzenberg, 2011. "Do Not Go Gentle Into That Good Night: The Effect of Retirement on Subsequent Mortality of U.S. Supreme Court Justices, 1801–2006," Demography, Springer;Population Association of America (PAA), vol. 48(4), pages 1317-1346, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:5:p:679-692. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.