Abstract:
The research aimed 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 examine the effects of retirement plans on workforce management. The study used case study since this design gives in-depth information of the variables under study. The target population was 300 employees and sample size of 30 employees. A research questionnaire was used as the research instrument to collect primary data, editing, coding was used to analyze data. Data was analyzed through use of Microsoft Excel and presented in form of tables and pie charts 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, act as source of income for the employee 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 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 retirement’s schemes to ensure timely payment of pension of retired employees.
