Consumption-Income Disparity During Retirement in Ghana

Mark Edem Kunawotor

doi:doi:10.11648/j.ijeee.20160101.12

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Consumption-Income Disparity During Retirement in Ghana

Mark Edem Kunawotor

Published in International Journal of Economy, Energy and Environment (Volume 1, Issue 1)

Received: 14 July 2016 Accepted: 27 July 2016 Published: 30 August 2016

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Abstract

The retirement stage in the life cycle is a difficult stage if not perhaps, the most difficult stage. This is because maintaining pre-retirement consumption level is the preserve of few, though required by all. In Ghana, the inadequacy of the Social Security and National Insurance Trust pension benefit for instance, in matching up with the consumption needs of pensioners and their dependants creates a consumption-pension income disparity. This paper investigates the extent of this disparity and the reasons for the disparity. Our results show that, average consumption exceeds average pension benefit by 41%. This means that on average, a pensioner requires an additional 41% of alternative sources of retirement income to supplement his/her pension benefit. The study identifies inadequacy of the pension benefit and certain socio-economic factors to be responsible for the consumption-income disparity.

Published in	International Journal of Economy, Energy and Environment (Volume 1, Issue 1)
DOI	10.11648/j.ijeee.20160101.12
Page(s)	8-15
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Consumption, Retirement, Pension Benefit, Consumption-Income Disparity

References

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[4]	Caglayan, E. and Astar, M. (2012), A Microeconometric Analysis of Household Consumption Expenditure Determinants for both Rural and Urban Areas in Turkey. American International Journal of Contemporary Research 2, 2.
[5]	Dan, A. A., (2000), What are People Doing to Prepare for Retirement? Structural, Personal, Work, and Family Predictors of Planning. Ph. D. Dissertation. Case Western Reserve University.
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[7]	Feldstein, M. (1974), Social security induced retirement and aggregate capital accumulation. Journal of Political Economy, 82 (51), 905-926.
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[12]	Keynes, J., M. (1936), The General Theory of Employment, Interest, and Money. New York: Harcourt, Brace & Co., pp. 91-95, 107-110.
[13]	Kunawotor, M. E. (2013). Consumption during retirement in Ghana: A case study of pensioners in Ghana. M.phil Thesis, University of Ghana, Legon.
[14]	Kunawotor, M. E. and Adjei-Mantey, Kwame (2014). Working in Ghana after Retirement. Researchjournali’s Journal of Economics. 2 (7).
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[18]	Paulin, G., D. and Duly, A. L. (2002), Planning ahead: Consumer expenditure patterns in retirement. Monthly Labour Review.
[19]	Pistaferri, L. (2009), The Life-Cycle Hypothesis: An Assessment of Some Recent Evidence. Stanford University, NBER, CEPR, IZA and SIEPR.
[20]	Quartey, P., Kunawotor M. E. and Danquah M. (2015), Sources of retirement income among formal sector workers in Ghana. African Journal of Economics and Management studies vol 7 (3).
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Mark Edem Kunawotor. (2016). Consumption-Income Disparity During Retirement in Ghana. International Journal of Economy, Energy and Environment, 1(1), 8-15. https://doi.org/10.11648/j.ijeee.20160101.12

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ACS Style

Mark Edem Kunawotor. Consumption-Income Disparity During Retirement in Ghana. Int. J. Econ. Energy Environ. 2016, 1(1), 8-15. doi: 10.11648/j.ijeee.20160101.12

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AMA Style

Mark Edem Kunawotor. Consumption-Income Disparity During Retirement in Ghana. Int J Econ Energy Environ. 2016;1(1):8-15. doi: 10.11648/j.ijeee.20160101.12

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@article{10.11648/j.ijeee.20160101.12,
  author = {Mark Edem Kunawotor},
  title = {Consumption-Income Disparity During Retirement in Ghana},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {1},
  number = {1},
  pages = {8-15},
  doi = {10.11648/j.ijeee.20160101.12},
  url = {https://doi.org/10.11648/j.ijeee.20160101.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20160101.12},
  abstract = {The retirement stage in the life cycle is a difficult stage if not perhaps, the most difficult stage. This is because maintaining pre-retirement consumption level is the preserve of few, though required by all. In Ghana, the inadequacy of the Social Security and National Insurance Trust pension benefit for instance, in matching up with the consumption needs of pensioners and their dependants creates a consumption-pension income disparity. This paper investigates the extent of this disparity and the reasons for the disparity. Our results show that, average consumption exceeds average pension benefit by 41%. This means that on average, a pensioner requires an additional 41% of alternative sources of retirement income to supplement his/her pension benefit. The study identifies inadequacy of the pension benefit and certain socio-economic factors to be responsible for the consumption-income disparity.},
 year = {2016}
}

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TY  - JOUR
T1  - Consumption-Income Disparity During Retirement in Ghana
AU  - Mark Edem Kunawotor
Y1  - 2016/08/30
PY  - 2016
N1  - https://doi.org/10.11648/j.ijeee.20160101.12
DO  - 10.11648/j.ijeee.20160101.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 8
EP  - 15
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20160101.12
AB  - The retirement stage in the life cycle is a difficult stage if not perhaps, the most difficult stage. This is because maintaining pre-retirement consumption level is the preserve of few, though required by all. In Ghana, the inadequacy of the Social Security and National Insurance Trust pension benefit for instance, in matching up with the consumption needs of pensioners and their dependants creates a consumption-pension income disparity. This paper investigates the extent of this disparity and the reasons for the disparity. Our results show that, average consumption exceeds average pension benefit by 41%. This means that on average, a pensioner requires an additional 41% of alternative sources of retirement income to supplement his/her pension benefit. The study identifies inadequacy of the pension benefit and certain socio-economic factors to be responsible for the consumption-income disparity.
VL  - 1
IS  - 1
ER  -

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Author Information

Mark Edem Kunawotor

Department of Finance, Zenith University College, Accra, Ghana

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APA Style

Mark Edem Kunawotor. (2016). Consumption-Income Disparity During Retirement in Ghana. International Journal of Economy, Energy and Environment, 1(1), 8-15. https://doi.org/10.11648/j.ijeee.20160101.12

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ACS Style

Mark Edem Kunawotor. Consumption-Income Disparity During Retirement in Ghana. Int. J. Econ. Energy Environ. 2016, 1(1), 8-15. doi: 10.11648/j.ijeee.20160101.12

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AMA Style

Mark Edem Kunawotor. Consumption-Income Disparity During Retirement in Ghana. Int J Econ Energy Environ. 2016;1(1):8-15. doi: 10.11648/j.ijeee.20160101.12

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@article{10.11648/j.ijeee.20160101.12,
  author = {Mark Edem Kunawotor},
  title = {Consumption-Income Disparity During Retirement in Ghana},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {1},
  number = {1},
  pages = {8-15},
  doi = {10.11648/j.ijeee.20160101.12},
  url = {https://doi.org/10.11648/j.ijeee.20160101.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20160101.12},
  abstract = {The retirement stage in the life cycle is a difficult stage if not perhaps, the most difficult stage. This is because maintaining pre-retirement consumption level is the preserve of few, though required by all. In Ghana, the inadequacy of the Social Security and National Insurance Trust pension benefit for instance, in matching up with the consumption needs of pensioners and their dependants creates a consumption-pension income disparity. This paper investigates the extent of this disparity and the reasons for the disparity. Our results show that, average consumption exceeds average pension benefit by 41%. This means that on average, a pensioner requires an additional 41% of alternative sources of retirement income to supplement his/her pension benefit. The study identifies inadequacy of the pension benefit and certain socio-economic factors to be responsible for the consumption-income disparity.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Consumption-Income Disparity During Retirement in Ghana
AU  - Mark Edem Kunawotor
Y1  - 2016/08/30
PY  - 2016
N1  - https://doi.org/10.11648/j.ijeee.20160101.12
DO  - 10.11648/j.ijeee.20160101.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 8
EP  - 15
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20160101.12
AB  - The retirement stage in the life cycle is a difficult stage if not perhaps, the most difficult stage. This is because maintaining pre-retirement consumption level is the preserve of few, though required by all. In Ghana, the inadequacy of the Social Security and National Insurance Trust pension benefit for instance, in matching up with the consumption needs of pensioners and their dependants creates a consumption-pension income disparity. This paper investigates the extent of this disparity and the reasons for the disparity. Our results show that, average consumption exceeds average pension benefit by 41%. This means that on average, a pensioner requires an additional 41% of alternative sources of retirement income to supplement his/her pension benefit. The study identifies inadequacy of the pension benefit and certain socio-economic factors to be responsible for the consumption-income disparity.
VL  - 1
IS  - 1
ER  -

Copy | Download