Effect of prolonged life expectancy on retirement funding sustainability among members of Kenya Association of Retired Public Officers

Abstract

Retired public officers in Kenya face challenges due to increased life expectancy and straining retirement funds. This study investigated the effect of prolonged lifespan on retirement funding sustainability, assessing healthcare access, cost of living, and alternative income sources. Grounded in Social Exchange and Life Course theories, it adopted a positivist philosophy and descriptive correlational design. The population of the study included retired public officers in Kenya, with a sample of 372 from the Kenya Association of Retired Officers (KARO). Quantitative data was collected through questionnaires and analysed using SPSS. Findings indicate healthcare access had a significant positive effect on retirement funding (β=0.328), implying a 32.8% increase with each unit rise. The cost of living by retirees had a significant negative effect (β=-0.192), suggesting a 19.2% decrease in funding per unit increase. Alternative income sources had a significant positive effect (β=0.275), indicating a 27.5% increase in funding per unit increase. The research provides insights for policymakers, fund managers, and retirees to address financial challenges, enhance funding options, and plan for secure retirement. Essentially, this research study advances the collective understanding of the unique cost of living by retired public officers and provides invaluable insights into the sustainability of retirement funding systems. By addressing the research objectives with diligence and rigor, this study serves as a guiding beacon for the development of comprehensive strategies and policies that safeguard the financial security and general well-being of retired public officers, thereby contributing to a more sustainable and secure retirement experience for all.