Abstract

The period of exiting from once full-time years of daily employment to a period of less time constraint can be a period of excitement or misery in poverty. It is pathetic that at one period, an individual is on a payroll of an employer but at another period the individual is not on any pension roll. The objective of the paper is to examine the qualification criteria for a pension and the effect of a pension type on poverty. Primary data was gathered from residences with at least one person aged 60 years old or older across 24 sampled localities in the country. A logistic regression estimation method was employed for the data analyses. The findings of the study indicate that different pension systems have different qualifying criteria that the individual must satisfy to be able to get the monthly pension. The conceptual framework indicates that although some individuals contributed to the SSNIT pension scheme, they could not qualify for the monthly pension due to the inability to satisfied the minimum number of months. The findings also show that the SSNIT pension recipients household were less likely of being poor compared to the CAP30 pensioners. It is recommended that SSNIT should embark on vigorous awareness creation exercise to educate the general public about the tenets of social security pension.

Highlights

  • The qualification for a social security pension in most countries is not automatic irrespective of which type of pension system is in place [2]

  • The receipt of pension is not automatic even if it is a universal old-age pension. In a country such as South Africa that has both noncontributory and contributory pension systems, even the noncontributory is subject to a mean-test that is some form of qualification criteria [17]. In other countries such as the United Kingdom, United States of America, and Malaysia, one must be a citizen and be of a certain age bracket and must contribute for a minimum period to be able to qualify for social security pension

  • The SSNIT pension scheme requires an individual to purchase annuities while the employer contributes 13% in the periods before retirement to qualify for social security pension in the country

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Summary

Introduction

The qualification for a social security pension in most countries is not automatic irrespective of which type of pension system is in place [2]. The receipt of pension is not automatic even if it is a universal old-age pension In a country such as South Africa that has both noncontributory and contributory pension systems, even the noncontributory is subject to a mean-test that is some form of qualification criteria [17]. In other countries such as the United Kingdom, United States of America, and Malaysia, one must be a citizen and be of a certain age bracket and must contribute for a minimum period to be able to qualify for social security pension.

Conceptual Framework of Receipt of Old-age Pension
Measurements of Types of Poverty
Type of Data and Empirical Model Specification
Socio-demographic Characteristics of Households with Elderly
Number of Elderly Engaged in Employment Activities
Number of Elderly on Pension
Calculation of Different Types of Household Poverty
Effect of Pension Type on Poverty
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