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Sources of retirement income among formal sector workers in Ghana

Peter Quartey (Department of Economics, University of Ghana, Accra, Ghana)
Mark Edem Kunawotor (Business School, Zenith University College, Accra, Ghana)
Michael Danquah (Department of Economics, University of Ghana, Accra, Ghana)

African Journal of Economic and Management Studies

ISSN: 2040-0705

Article publication date: 5 September 2016

487

Abstract

Purpose

The purpose of this paper is to examine alternative sources of retirement income apart from the Social Security and National Insurance Trust (SSNIT) pension benefits and the significance of these retirement income sources in the consumption decisions of pensioners in Ghana.

Design/methodology/approach

Using household survey data on SSNIT pensioners in Accra, Ghana, this study employ the Garrett and Kendall coefficient of concordance (W-test) to robustly identify the sources of retirement income and determine the significance of these income sources in financing consumption expenditure during retirement.

Findings

The findings show that apart from SSNIT pension benefits, other sources of retirement income including rental income, income from post-retirement jobs and remittances from family and friends are significant sources of income for pensioners in Ghana. Personnel savings and investment was the least important source of retirement income.

Research limitations/implications

Further research will be needed to validate these results, particularly using household survey data that covers the entire country.

Originality/value

The study contributes to the scanty literature on retirement income by robustly identifying the alternative sources of retirement income and their importance or significance to pensioners in Ghana.

Keywords

Citation

Quartey, P., Kunawotor, M.E. and Danquah, M. (2016), "Sources of retirement income among formal sector workers in Ghana", African Journal of Economic and Management Studies, Vol. 7 No. 3, pp. 366-378. https://doi.org/10.1108/AJEMS-07-2014-0054

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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