Psychosocial Programmes and Employees Retirement Preparedness: Empirical Evidence From the Educational Sector in Kenya

Abstract

Retirement is a process with employees planning decisions generally focusing on the subjective life expectancy, a mental model of years remaining before one dies. Indeed, the real exit of an individual from a career job is accompanied by changes that include social and psychological, resources leading to variations in an individual’s well-being. The purpose of this study was to assess how employees’ engagement in psychosocial programmes affects their retirement preparedness in the education sector in Kenya. The target population was 1,238 teachers aged 50 years and above and employed in public secondary schools by the Teachers Service Commission in Kirinyaga and Murang’a Counties by 2017. A representative sample of 334 respondents was selected using multistage sampling technique. Data was collected using semi structured questionnaire and interview guide. Logit regression was used to establish the relationships between variables in the study and to test the null hypotheses at P ≤ 0.05 confidence level. The findings indicate that even though the sampled pre-retiree teachers were not adequately prepared for retirement psychosocially, yet their engagement in psychosocial programmes increases their retirement preparedness level. The reported findings extend the current understanding of employee separation programmes and raise implications for the various theories that underpin employee separation decisions in HRM.

Mediating Role of Employee Decision on Relationship Between Employee Separation Planning and Retirement Preparedness in Kenya

“…In presenting a similar, psychosocial, financial and personal health programmes measures also exhibited mean score of less than 3 implying pre-retirees were indeterminate of extent of participation in activities related to separation planning. Despite the findings of other studies that psychosocial factors such as social embeddedness, are essential in retirement planning (Gathiira et al, 2019b;, the study findings paint a blurred image of retirement preparedness by pre-retiree teachers. In support of previous studies (Gathiira, Muathe & Kilika, 2018), the study portrayed that pre-retirees had not engaged in activities that provided financial literacy and investment to supplement salary income to an extent of majority not meeting recurrent expenditure in the absence of salary.…”

“…Pre-retirees' engagement in psychosocial programmes had an aggregate mean score of 3.05 and a standard deviation of 1.12 which suggested that pre-retiree teachers' participation in activities that foster mentorship opportunities, social orientation, and retirement counseling was indistinguishable. The findings concur with Gathiira et al (2019b) and Itika (2011) that, despite mentorship, coaching, community involvement and volunteer activities being essential in employee retirement planning, employees seldom participate as expected. Considering the empirical findings that psychosocial factors such as social embeddedness, are essential in retirement planning (Shultz & Henkens, 2010), the study findings raises a great concern on retirement preparedness.…”

“…Employee retirement planning should not be a concern only during the second half of employee's life, but rather from start of employment (Gathiira et al, 2019b;Tomczyk & Klimczuk, 2019). Workers with higher retirement self-efficacy tend to plan their retirement in advance (Valero & Topa, 2014).…”

“…The factors include psychological factors (Muratore & Earl, 2015), retirement planning (Curl & Ingram, 2013;Adams & Rau, 2011), physical health (Moffatt & Heaven, 2017), and financial factors (Thuku & Ireri, (2013). The factors motivate the employee to deliberately initiate behavioral actions in preparation for separation from the employer organization (Gathiira, et al, 2019b). The employee separation planning was conceptualized to include programmes advertently undertaken by pre-retiree to envision financial, psychosocial and personal health planning aspects.…”

“…Employee Separation planning (ESP) process is the starting point in retirement preparedness that individuals institute during employment life phase in anticipation of postretirement life . Some researchers recommend that it ought to start long before individual exit employer organization (Gathiira, Muathe, Kilika, 2019b;Kutlu-Koc 2014). Demographic and labor force change patterns from various countries and regions such as United States, Western Europe, Japan, China, and India demonstrate that retirement preparedness is an area of global significance .…”