EFFECT OF DEMOGRAPHIC CHARACTERISTICS ON MICRO-PENSION UPTAKE AMONG INFORMAL EMPLOYEES OF KENYA PORTS AUTHORITY
DOI:
https://doi.org/10.47941/jbsm.131Keywords:
demographic characteristics, micro-pension uptake, informal employees, financial literacy, retirement planningAbstract
Purpose: The purpose of this study was to examine the effect of demographic characteristics on micro-pension uptake among informal employees of Kenya Ports Authority.
Methodology: The study adopted a descriptive survey design. The target population comprised of the informal employees of Kenya Ports Authority. There are 2500 informal employees at Kenya Ports Authority. A sample size of 96 informal employees was selected through simple random sampling. The study used primary data which was collected through questionnaires which comprised of both open ended and close ended questions. Quantitative data was analysed using both descriptive and inferential statistics. Descriptive statistics such as percentages, mean, frequency distribution and standard deviation were computed to describe the characteristics of the variables of interest whilst with inferential statistics, correlation and multiple regression analysis was used to establish the nature and magnitude of the relationships between the variables. All the analysis was done using SPSS statistical package version 20. Content analysis was also used for qualitative data. The results of data analysis were presented using figures and tables for easy understanding and interpretation.
Findings: The study findings indicated that financial literacy; income level and socio demographic characteristics influence the micro pension uptake. The study found that despite the above average literacy level among Kenyans; effort should be done to increase their participation in the management of their pension schemes. Based on findings it was possible to conclude that there was a positive and significant relationship between level of income and micro-pension schemes, similarly higher income level is strongly related to higher willingness. The findings also indicate that social demographic is a key factor in explaining micro-pension schemes.
Unique contribution to theory, practice and policy: With a majority of the informal sector getting most of their information on pension through the media, the study recommends that there is need to strengthen and repackage the information being aired to the masses on the importance of pension savings. These packages should be designed in a way that they can yield to eventual participation. It is recommended that there is a need for young people to begin saving for retirement as early as possible, and that starting early gives the total savings ‘pot’ longer to benefit from interest or investment growth. Further, it recommends that the government should also design a special program of reaching the informal sector workers through seminars and workshops on pension matters. It is recommended that future studies should be carried out to find the factors leading to a low uptake of the Micro-Pension schemes in the informal sector and what needs to be done to improve the uptake.
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