| dc.description.abstract | The present-day workers are concerned about both debt and financial security hence they
are continually looking for answers to the right practices when it comes to planning for
their retirement. Employers take it upon themselves to help their employees understand
retirement planning by giving them a defined-contribution retirement plan and going
even further to educate them about effective long-term financial planning. There is little
literature about retirement preparation practices among employees working in
commercial banks, especially with respect to Kenyan Commercial banks. The study
therefore sought to establish retirement preparation practices in commercial banks in
Kenya. The study adopted descriptive research design. The population of study was the
top management of the 44 commercial banks in Kenya. The study adopted simple random
sampling to sample 35 commercial banks in Kenya. Data was analysed using descriptive
statistics. The study found that most employees in the sampled banks had efficient
knowledge on matters regarding retirement preparation practices in commercial banks in
Kenya. The study established that increasing the maximum allowable normal retirement
age would not require any plan to make a change, but would permit sponsors who wanted
to raise their plan’s normal retirement age to do so. The study found that one of the
reasons why most employees opt for early retirement is the fact that employers tend to
encourage older workers to retire early to give way to young workers who are just
entering the labor market. This strategy is undertaken to prevent the growth of
unemployment among young people, which has been noted in many EU countries.
Effective as it is for this purpose, the implementation of the strategy adds to the problems
of the ageing society. Most respondents also indicated that health condition and work
capability are the main factors determining the worker’s decision whether to continue
working or quit the job and retire. The study recommends that public servants be more
sensitized on the importance of retirement preparation and the need for retirement
information as a way of ensuring a comfortable retirement. The government must also
ensure that its employees are well informed about the challenges that come with
retirement and also on how to effectively manage the pension money and free- time that
comes with retirement. | en_US |
