Effect On The Welfare Of Retirees Accounting Essay

Life after retirement is one of the most awful periods for workers in Nigeria. The fright of confronting the hereafter after retirement creates an atmosphere of disturb among employees ( Editorial, 2009:1 ) . Retirement is seen by workers as a passage that could take to physiological and economical job ( Ogunbameru and Bamiwuye, 2004 ) . The arousing ideas of confronting unsure hereafter after retirement by workers is responsible for most bureaucratic corruptness ( Agba, Ikho and Ushie, 2008 ) and could besides be responsible for low committedness to work by employees and service ineffectualness of critical establishments in Nigeria, deficiency of equal societal public assistance for the aged ( Awiosika, 2009 ) , immense shortage, arbitrary addition in wages or rewards, hapless disposal of retirement benefits ( Ikeji, C.C. et Al, 2011 ) . Over the past three decennaries, the life conditions of pensionaries in Nigeria had deteriorated due to the erodings of their economic power, alterations in household constructions and functions and unsustainability of the pension strategy and inability of authorities to carry through her expected function in the attention and support of pensionaries in the state ( Ajiboye, 2011 ) . Pensioners are regarded as vulnerable groups, hence it has been accepted that pensionaries are in dare demand of authorities attending. This is because poorness depredation this category of people than any other classs of people in Nigeria ( Ajiboye, 2011 ) . Assorted attempts by assorted consecutive governments in the state at turn toing the demands of pensionaries in the society have proven stillborn. For case, pensions of public retainers in Nigeria that is supposed to function as agencies of nutriment in their old age were ill handled by Nigerian authorities and its corrupt functionaries. Due to these background effects, the Pension Reform Act of 2004 was instigated by former president Olusegun Obasanjo led disposal in 2004 ( Aderinokun and Adoba, ( 2004 ) , National Pension Commission, 2008 ) . The reform is conducive in nature with the purpose of guaranting that every individual who has worked in either the populace or private sectors receives his or her retirement benefit as in when due. The reform was to function as societal public assistance strategy for the aged by guaranting that workers save to provide for their support during old age ( National Pension Commission, ( 2005 ) , Sule, 2009 ) .

Seven old ages after the constitution of the new Pension Act, there is still guess among Nigerians about the success of the Scheme. Whether the new Pension Act will be able to turn to the legion jobs associated with retirement strategy of the yesteryear. Specifically, some have asked whether the conducive pension act of 2004 would be able to turn to the jobs of corruptness, hapless disposal of pension fund, hapless monitoring, rating and supervising of pension fund that normally characterized pension strategies in Nigeria ( Casay, H.B. , 2009 ) . Consequently, workers frequently ask whether they would of all time hold fiscal security after retirement, what is the destiny of their kids and family after retirement? These inquiries among others occupied the heads of workers in Nigeria and could be responsible for workers negative attitude towards retirement, low committedness to work every bit good as high labor bend over ( Oriofowomo, A.O. , 2006 ) . This survey will therefore travel to the field straight to look into the effects of the Pension Reform Act of 2004 on the public assistance of retired persons in Nigeria. This research will depend on both the primary and secondary beginnings for it probe. At the terminal of this research, the research worker shall convey out his findings, besides will do possible recommendations and besides pull out a decision for this research.

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This research will take at understanding the construct of pension and the new pension strategy introduced by former president Olusegun Obasanjo disposal. However, the aims or purposes of this research are to:

1. To verify if there is a important difference between the new and old pension strategy.

2. To verify if there is positive consequence on the public assistance of the retired persons under the new pension strategy.

3. To verify if there is difference in the disposal of pension financess in the new pension strategy comparison to the old one.

4. To verify if the new pension strategy has so addresses the failures of the old pension strategy.

5. To verify if there is transparence and efficiency in the direction of pension financess.


Pension every bit good as it is, has lacked proper attending over the old ages and have been bedevilled with many jobs. The disposal of pension strategy has been by and large weak, inefficient and non-transparent. The job of hapless disposal has caused many pensionaries to go destitute without agencies of nutriment ( Fashanu, .I.K, 2012 ) .

The jobs of delayed and irregular payment of the pension benefits have led to many wellness jeopardies in the lives of many pensionaries. Many have been reported to hold collapsed and died while on waiting line to acquire their stipends. Many of them who were non able to construct from one house before retirement are frequently seen driven from one house to another because they are non able to pay their rent. Many of them are no longer able to carry through their duty both to their households and to the society at big. Almost all pensionaries were dejected and frequently looking like people without hope for the following twenty-four hours ( Fashanu.I.K, 2012 ) .

Another major booby trap of the pension ‘s benefits is the fact that before the Pension Reform Act in 2004, the populace sector operated mostly the defined benefit pay-as-you-go ( PAYG ) Scheme, which depended on budgetary proviso from the assorted grades of authorities for support. The budgetary proviso was prematurely and unequal. This had made the strategy unsustainable. The state of affairs was worsened by additions in wages and pension from 16.7 % to 30 % between 1995 and 1990 ( Urhoghide R.O, and Ogiedu K.S. , 2008 ) .

The private sector strategy was besides characterized by really low conformity ratio to deficiency of effectual ordinance and supervising of the system. ( Urhoghide R.O, and Ogiedu K.S. , 2008 ) .

The unequal budget allotment has caused most pension strategy in the sector to be ill funded or unfunded. The budget release which rarely come on agenda were for short of due benefits. This state of affairs and resulted into unprecedented and unsustainable outstanding pension shortages estimate at over a‚¦2 trillion before the beginning of the Pension Reform Act of 2004. Again, there was no attested list informations on pensionaries, while about 14 ( 14 ) paperss were required to register pension claims ( Edo State Pension Board of Nigeria, 2009 ) .

There was besides job of the restrictive and crisp patterns in the investing and direction of pension fund which worsened the job of pension liabilities to the extent that pensionary were deceasing on a confirmation waiting lines and most of the over 300 establishments to fund the strategy were bankrupted before the new strategy came on board ( Urhoghide R.O, and Ogiedu K.S. , 2008 ) .

In the private sector, most employees in the formal constitution and all those engaged in the informal endeavors were non covered by any signifier of retirement benefit agreement ( kolawole, 2010 )

Again, the strategy being unfunded gave no room or chance for accretion of investible financess ( Balogun, 2006 ) .


For the intent of this research work to be carried out, the undermentioned research inquiries shall be derived:

( RQ1 ) Is there any important different between the old and new pension strategy?

( RQ2 ) . Is at that place any positive consequence of the new pension strategy on the public assistance of the retired person?

( RQ3 ) . Is there transparence and efficiency in the direction of pension financess in the new pension strategy?

( RQ4 ) . Has the new pension strategy been able to turn to the failures of the old pension strategy?


For the intent of this research, two hypotheses will be used to happen a probationary reply to the research confirmation. The Chi-square will be used to verify the cogency of our hypotheses.


Theory is: “ a program or strategy bing in the head merely, but based on rules verifiable by experiment or observation ” ( Funk & A ; Wagnalls, 1987 ) .

The theoretical frame work intended to be usage for the intent of this research is the Organisational Behaviour theory. Harmonizing to Daft, ( 2004 ) , “ Organizations are societal entities that are goal-oriented ; are designed as intentionally structured and coordinated activity systems, and are linked to the external environment ” . Organization theory: is the set of propositions ( organic structure of cognition ) stemming from a definable field of survey which can be termed organisations scientific discipline ( Kast & A ; Rosenzweig, 1970 ) .

The survey of organisations is an applied scientific discipline because the ensuing cognition is relevant to job work outing or determination devising in ongoing endeavors or establishments ( Kast & A ; Rosenzweig1970 ) .

Organizational behavior is a field of survey that investigates the impact that persons, groups and constructions have on behavior within an organisation. It is an inter-disciplinary field that includes sociology, psychological science, communicating, and direction ; and it complements the academic surveies of organisational theory ( which is focused on organisational and intra-organizational subjects ) and human resource surveies ( which are more applied and business-oriented ) . It may besides be referred to as organisational surveies or organisational scientific discipline. The field has its roots in industrial and organisational psychological science ( hypertext transfer protocol: //en.wikipedia.org/wiki/Organizational_behavior ) . However, the concern of this research will analytically look into within the turbulent environment where most Nigerian public endeavors operate. This environment is characterized by rapid altering environment, which its political instability since 1966 in which the armed forces junta dominated the political terrain on occasion punctuated by a short civilian interregnum. The Nigerian pension endeavor could non run into their set aims due to the hostile turbulent environment where they operate for three decennaries. However, notwithstanding the disruptive environment as party explicating the inefficiency and ineffectualness of the Nigerian pension system, in line with economic planetary tendency, it is the sentiment of the Nigerian policy shapers that denationalization of this endeavor might convey saneness of efficiency and effectivity to the Nigerian pension ( Adeleke I. , 2011 ) .


The methodological analysis for this research will be based on both Primary and secondary beginnings of informations for her probe. The primary beginnings will include the usage of questionnaire which will be sent to a dependable individual to assist administer in Nigeria, and instantly after make fulling, will be sent back to me by station through DHL. If clip will allow, the research worker intends to travel to Nigeria for unwritten interview to run into some relevant forces and retired persons, but if clip will non allow, the unwritten interview will be neglected. The secondary beginnings will include text books from assorted bookmans, dependable Diaries, Articles, cyberspace information and any other information I can put my manus upon, will be used as a secondary beginning.


This research will dwell of five chapters as summarize holla: –

Chapter ONE


This chapter will dwell of an Introduction/Background to the survey, Statement of the Problem, Research Question, Objective of the Study, Hypotheses of the survey, significance of the survey, Scope of the survey, Limitations to the survey and the definitions of footings.

Chapter TWO


This Chapter will dwell of our Literature reappraisal from relevant Text books of different bookmans, Diaries, Articles, Internet and any other stuff we can put our custodies upon and our theoretical frame work that will be used to analyze our survey.

Chapter THREE


This chapter will dwell of our Research methodological analysis. This chapter will explicate how the research worker intends to transport out his research.

Chapter FOUR


This chapter will dwell of our Data presentation and information analyses. Decidedly, there will be usage of tabular arraies to analyze our research inquiries through our administered questionnaire.

Chapter FIVE


This chapter will dwell of our findings, drumhead, recommendation and our decision.


This research undertaking will lend enormously to the already bing organic structure of cognition. It will increase the cognition of pupils of Social and direction Sciences, Development and Economic Studies and besides pupils from assorted Fieldss of surveies and besides, International Students who intend to ship on a similar research. This survey will non merely assist to better pension job in Nigeria but will besides move as a guideline to implement meaningful policies through its recommendation. More so, this research will lend meaningfully to the general populace at big.

The undertaking will besides be utile to pupils who embark on this same research due to the fact that, this undertaking can assist them on their literature reappraisal and their recommendation as good. Through my recommendations, the authorities of Nigeria will be able to follow a suited public policy steps to leverage the public assistance or retired persons.












Research subject entry


Research proposal entry


Chapter 1 & A ; 2 Begin

Distribution of Questionnaire

Tax return of questionnaire

Chapter 3 Begins

Chapter 4 & A ; 5 Begins

Final Documentation & A ; entry


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