Effects of changes in retirement plans on employee savins and retirement age: a case study of tea research institute-kericho.

Abstract

The research aim at investigating the effects of changes in retirement plans on employee savings and retirement age. The following objectives were formulated; to establish the importance of the retirement benefit schemes policy; to establish whether changes in retirement plans affect employee savings and retirement age; to investigate how changing labor market has affected the retirement plans; to determine whether wage stagnation and increased cost of benefits affect employee savings and retirement age. The study used case study since this design gives in-depth information of the variables under study. The target population was 144 employees. A research questionnaire was used as the research instrument to collect primary data, editing, coding was used to analyze data. Data was presented in form of analysis tables showing responds, percentages and the totals. The findings show that changes in retirement plans has affected employee savings in a negative way and therefore an employee has to work for many years so as to save enough for retirement. The researcher concluded from the findings that retirement benefits help employees to meet their social responsibilities, source of income for the client in his or her working life and source of cash for the employee in his or her retirement age. The researcher recommended that the organization should increase wages and salaries accordingly to match with the cost of living, provide financial education and training to enable employees achieve their retirement goals, offer and promote supplemental savings to boost savings for retirement. The government should also put laws to govern investments of retirements schemes to ensure timely payment of pension of retired employees.