The effect of the pre-retirement withdrawal regulations on household saving in Kenya

Abstract

The purpose of this study was to determine the effect of pre-retirement withdrawal regulations on household savings in Kenya. The research objective was intended to establish the level of pre-retirement withdrawal of retirement benefits from schemes as a result of changes in jobs on household savings in Kenya. The research design was descriptive survey study in nature since it focused on members of registered retirement benefits schemes in Kenya. The population of the study was all the registered occupational benefits schemes in Kenya. This implied that the total population of this study is 1216 firms as given by the Retirement Benefits Authority (RBA). For representativeness purposes, the current study took a sample size of 11% of the population made of 138 households selected through purposive random sampling. This sample size was justified since this study could not anticipate how good the response rate would be. All the respondents had been members of registered retirement schemes for eight (8) years (2005 to 2012). The study used primary data collected through questionnaires to the respondent.The researcher used averages and percentages in this study. The researcher used Statistical Package for Social Sciences (SPSS) to generate the descriptive statistics and also to generate inferential results.