CHANGES IN THE PRE-RETIREMENT PLANS OF OLDER WORKERS (50-60 YEARS) IN PUBLIC UNIVERSITIES IN RIVERS STATE AMIDST THE COVID-19 PANDEMIC: IMPLICATIONS FOR HOUSEHOLDS

Abstract

The Covid-19 pandemic has had devastating impact on employees retirement planning. Thus, this study assessed the changes in the pre-retirement plans of older workers in public universities in Rivers state amidst the COVID-19 pandemic and its implication on households. Simple random sampling technique was employed to draw a sample of 150 workers from two (2) government institutions in Rivers State namely: Rivers State University and Federal College of Education (Technical), Omoku. Questionnaire was the main instrument used for data collection which was validated by three experts with a reliability coefficient of 0.73. Descriptive statistics was used to analyze the data collected from the study and presented in tables and charts. Majority of the respondents (82%) indicated that Covid-19 has affected their retirement savings. A high number (40%) of the respondents indicated that the Covid-19 has changed their savings behavior and reduced their savings rates while 30% indicated that the pandemic has caused additional withdrawals. More than half of the respondents (63.6%) indicated that they plan to retire about the same time as planned while 18.2% plan to retire earlier than planned due to the pandemic. A large number (75%) indicated that they have withdrawn more money than usual from their retirement savings and 77.8% of the respondents used the withdrawals to help cover unexpected expenses. Also, 41% of the respondents indicated that building a stronger retirement funds and obtaining professional financial advice were some measures they were taking for their pre-retirement plans amidst the pandemic while 33.3% indicated spending less and saving more. The result showed a dramatic strain on the retirement planning of workers which could pose an effect on households by reducing household income and savings. Support in the form of counseling, education and flexibility should be given to workers by their employers to prepare for retirement.