The influence of knowledge of pension fund schemes on retirement planning among primary school teachers in Bujumbura, Burundi
Ninette Uwizeye, Dr. Hosea Mpogole
Most of the people perceive retirement as limitations, losses, financial fears, and worries about how to stay healthy and leave family members unburdened. However, other people perceive retirement as an opportunity to experience freedom from work pressures, responsibilities and time constraints. The study investigated the influence of knowledge of pension fund schemes on retirement planning among primary school teachers in Burundi. The study was cross-sectional in design covering a sample of 107 respondents out of a target population of 1610 teachers. Interviews, questionnaire and documentary review were used in data collection. The study used a mix of data analysis techniques as informed by the nature of the data collected; quantitative data was analyzed using descriptive and inferential statistics through SPSS while qualitative data was analyzed through content analysis based on themes as guided by the research objectives. According to the study findings, the overall knowledge of pension schemes scored a mean of 4.1184 and S.D. of.61473; implying that the majority of primary teachers in Burundi do not have enough knowledge of pension schemes. Results indicate that knowledge of the pension schemes has a positive and significant correlation with retirement planning [r(107) =.273, ρ=.004]. Further analysis showed that demographic variables such as age (β=.11, t= 2.05, p<.05), educational level (β=.06, p<.05), income level (β=.15, t= 2.46, p<.05) and financial literacy (β=.09, t= 2.32, ρ<.05) had significant influence on the relationship between knowledge of the pension schemes and retirement planning. The study concludes that knowledge on various pension schemes are key to retirement planning among teachers in Burundi; when teachers are aware and more informed about various pension schemes, they are able to decide and plan for best retirement options. Therefore, for workers to better plan for retirement they should possess adequate knowledge of their pension schemes. It is therefore essential for employers to organize workshops or seminars to educate their employees on their pension schemes, identify the prospects and challenges associated with the schemes early enough to assist workers to make informed decisions about their retirement.