Abstract:
The debate that reforming the Defined Benefits Pension Schemes or the Contributory Benefits Pension Schemes will guarantee decent socio-economic status among upcoming retirees has polarized retirement researchers nationally and internationally. The contention is whether governments in developing countries will have adequate resources to provide universalized coverage or individuals will have adequate resources to save in contributory benefits schemes. This study examined the available literature on retirement and found little information on the part of working individuals to plan for their retirement. Using the Conservation of Resources Theory and Continuity Aging Theory, the study conceptualized retirement planning into saving culture, financial planning, and lifestyle; and socio-economic status into household expenditure, access to health care and housing quality.
The study contributed to the debate by drawing evidence from 236 retired civil servants from Busoga sub-region in Uganda. The researcher documented the relationship between retirement planning and socio-economic status. The researcher estimated the relationships between retirement planning domains captured in a survey questionnaire and socio-economic status. Finally, the researcher examined the influence of demographic factors - particularly gender, marital status, level of education, income, and age on retirement planning and socio-economic status.
The study found that lifestyle has a significant relationship with socio-economic status. Saving culture and financial planning do not have significant relationships with socio-economic status. The study concluded that a weak relationship exists between retirement planning and socio-economic status in Uganda, though these estimates are sensitive to education level and monthly income. The findings provide significant empirical evidence regarding well-established theories on the multi-dimensional nature of retirement planning and socio-economic status. The findings can inform policy reforms aimed at reducing old-age poverty among retired civil servants. The proposed retirement planning model provides practical insights to working individuals to prepare for their retirement.
