<abstract xmlns="http://www.w3.org/1999/xhtml">

<bold>Aim/purpose</bold> – The main objectives of this article are to estimate percentage of preretirement savings that is needed, based on the current salary scale, to sustain academic and non-academic staff of Federal Universities in Nigeria in retirement using University of Lagos as a case study.
<bold>Design/methodology/approach</bold> – The methodology of the article was designed by modifying the life-cycle model of household behaviour combine with the target replacement ratio benchmarks for different income levels as used by Pension Commission 2004, expressed in 2013 earning terms.
<bold>Finding</bold> – The research findings show that the lowest income earner with entry age of 25 years and retirement age of 65 years should, without any interruption throughout the service years, contribute a minimum of pre-retirement savings of 28.01% on an annual basis from his or her emolument to maintain the pre-retirement standard of living once he/she has ceased working.
<bold>Research implications/limitations</bold> – The scope of this research study is subjected to some limitations: (1) scarcity of pension financial data in Nigeria; (2) the academic and non-academic staff of Federal Universities in Nigerian using University of Lagos as a case study.
<bold>Originality/value/contribution</bold> – The study has established the minimum contribution rate into the Retirement Savings Account so as to meet the internationally acceptable replacement ratio for employees of the Nigerian Federal Universities.
</abstract>

Aim/purpose – The main objectives of this article are to estimate percentage of preretirement savings that is needed, based on the current salary scale, to sustain academic and non-academic staff of Federal Universities in Nigeria in retirement using University of Lagos as a case study.
Design/methodology/approach – The methodology of the article was designed by modifying the life-cycle model of household behaviour combine with the target replacement ratio benchmarks for different income levels as used by Pension Commission 2004, expressed in 2013 earning terms.
Finding – The research findings show that the lowest income earner with entry age of 25 years and retirement age of 65 years should, without any interruption throughout the service years, contribute a minimum of pre-retirement savings of 28.01% on an annual basis from his or her emolument to maintain the pre-retirement standard of living once he/she has ceased working.
Research implications/limitations – The scope of this research study is subjected to some limitations: (1) scarcity of pension financial data in Nigeria; (2) the academic and non-academic staff of Federal Universities in Nigerian using University of Lagos as a case study.
Originality/value/contribution – The study has established the minimum contribution rate into the Retirement Savings Account so as to meet the internationally acceptable replacement ratio for employees of the Nigerian Federal Universities.

An assessment of adequacy of pre-retirement savings for sustainable retirement income under the Nigerian 2014 pension scheme

Department of Actuarial Science and Insurance, Faculty Business Administration

Journal of Economics and Management

This work is licensed under the Creative Commons Attribution-NonCommercial 4.0 International License.

Aim/purpose – The main objectives of this article are to estimate percentage of preretirement savings that is needed, based on the current salary scale, to...

An assessment of adequacy of pre-retirement savings for sustainable retirement income under the Nigerian 2014 pension scheme

Published Online: Jul 23, 2021

Page range: 150 - 171

Received: Dec 15, 2017

Accepted: Oct 02, 2018

DOI: https://doi.org/10.22367/jem.2019.35.08

Keywords
adequacy, replacement rates, actuarial assumptions, salary-scale and consumption smoothing

© 2019 Ashim Babatunde Sogunro et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial 4.0 International License.

An assessment of adequacy of pre-retirement savings for sustainable retirement income under the Nigerian 2014 pension scheme

Published Online: Jul 23, 2021

Page range: 150 - 171

Received: Dec 15, 2017

Accepted: Oct 02, 2018

DOI: https://doi.org/10.22367/jem.2019.35.08

Keywordsadequacy, replacement rates, actuarial assumptions, salary-scale and consumption smoothing

© 2019 Ashim Babatunde Sogunro et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial 4.0 International License.

Keywords
adequacy, replacement rates, actuarial assumptions, salary-scale and consumption smoothing