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Journal of Education and Practice ISSN 2222-1735 (Paper ISSN 2222-2!!" (#nline $ol.%& No.

25& 2'13

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Financial Planning Strategies towards Retirement as Perceived by Potential Retirees in Universities in the Niger Delta
(r. ()rs. *nna #no+ase (epart,ent #f -ounselling Ps+c.olog+& (elta State /ni0ersit+& *1ra2a& Nigeria. Abstract 3.e researc. e4a,ined t.e perception of potential retirees on 5inancial Planning Strategies towards retire,ent in /ni0ersities in t.e Niger (elta. 5i0e researc. 6uestions and fi0e .+pot.eses were for,ulated to guide t.e stud+. 3.e instru,ent used for data collection was a self-designed 6uestionnaire tagged 75inancial Planning Strategies 3owards 8etire,ent 9uestionnaire: (5PS389 and it .ad a relia1ilit+ coefficient of '.!%. 3.e sa,ple consisted of 227 lecturers rando,l+ selected fro, fi0e uni0ersities. 3.e ; < test statistics was utili=ed to test t.e .+pot.esis at '.'5 le0el of significance and t.e findings indicated t.at t.ere were no significant differences 1etween lecturers in t.eir perception of t.e use of fi4ed deposit account& cooperati0e societies& in0est,ent in s.ares and t.e New -ontri1utor+ Pension Sc.e,e as financial planning strategies towards retire,ent. >ut t.ere was significant difference 1etween lecturers in t.e perception of t.e use of personal sa0ings account as a financial planning strateg+ towards retire,ent. >ased on t.e findings& so,e reco,,endations were proffered. INTRODUCTION 3.e concept of retire,ent connotes different t.ings to different people. ?.ile so,e persons 0iew it positi0el+ and await it wit. .appiness& ot.ers .a0e negati0e perceptions a1out retire,ent as t.e+ associate t.at period of life wit. 1oredo,& econo,ic .ards.ip and deat.. *nd conse6uentl+& suc. indi0iduals e4perience a sense of isolation and loss of prestige. 8etire,ent is a necessar+ end w.ic. e0er+ wor2er ,ust e4perience& w.et.er in t.e pu1lic sector or in t.e pri0ate sector. *ccording to *2inade (2''@ & retire,ent is a real and ine0ita1le end in a wor2erAs career and it is as sure a deat.. #gung1e,i (2''3 refers to retire,ent as a stage in life w.en a wor2er wit.draws fro, an acti0e and regi,ented ,ode of life in response to t.e strains of age& poor .ealt. and social pressure. 8ogers (2''! defined retire,ent as a golden ti,e in t.e life of a wor2er& w.en t.e e,plo+ee can stop wor2ing and do t.e t.ings t.at .eBs.e .as alwa+s wanted to do 1ut .as ne0er .ad t.e ti,e. *ctuall+& retire,ent is a ti,e for indi0iduals to rela4 and slow down into a 6uiet life and prepare for old age. 5urt.er,ore& retire,ent can also 1e 0iewed as a period of freedo, w.en t.e retiree can tac2le long awaited goals (w.ic. .ad .it.erto 1een put off 1ecause of t.e pressure of wor2 and enCo+ life to t.e fullest. 3.ere are t.ree t+pes of retire,ent and t.e+ are 0oluntar+& co,pulsor+ and ,andator+ retire,ent. (*2inade& 1DD3 . O!UNTAR" OR S#!F$R#TIR#%#NT 3.e decision to retire is t.at of t.e e,plo+ee and not t.e e,plo+er. So,e of t.e reasons for going on self- retire,ent ,a+ 1e to ta2e up Co1s t.at attract ,ore financial 1enefits or to engage in personal 1usiness in w.ic. t.e person 1eco,es ,ore autono,ous. *not.er reason according to #de (2''% could 1e to 1ow to t.e call of t.e co,,unit+ people in0iting .i, to occup+ t.e stool of a traditional ruler. CO%PU!SOR" R#TIR#%#NT -o,pulsor+ retire,ent is so,eti,es e,1ar2ed upon in order to flus. out t.e 1ad eggs in t.e ci0il ser0ice or to reduce t.e wor2force. It ,a+ ta2e t.e for, of staff rationali=ation or retrenc.,ent. 5or instance& t.e late Eead of State& Feneral )urtala )o.a,,ed undertoo2 retrenc.,ent of ci0il ser0ants in t.e 5ederal Ser0ice in t.e ,id < 1D7's. It .as to 1e stressed t.at t.is t+pe of retire,ent usuall+ t.rows wor2ers off 1alance 1ecause t.e+ are unprepared for it. %ANDATOR" R#TIR#%#NT 3.is is also 2nown as nor,al retire,ent and it occurs w.en t.e e,plo+ee .as put in 35 +ears of ser0ice or .as attained t.e ,ini,u, age of retire,ent w.ic. is @' +ears for ci0il ser0ants and uni0ersit+ ad,inistrati0e staff 1ut @5 +ears for /ni0ersit+ lecturers. -o,,enting on t.is& *2inade (2''@ stated t.at detailed infor,ation on )andator+ retire,ent are contained in t.e conditions of ser0ice for all wor2ers and t.at e,plo+ees are e4pected to gi0e @ ,ont.s notice prior to t.e effecti0e date of .isB.er retire,ent. )an+ wor2ers fail to plan for t.eir retire,ent and e0en t.e few t.at plan do so 0er+ late. *c.ig1e (1DD! e,p.asi=ed t.at lac2 of planning 1+ wor2ers for retire,ent causes t.e, to 1e ,ore dependent and una1le to cope wit. life after t.eir disengage,ent fro, wor2. -ontinuing& .e said t.at pu1lic ser0ants w.o retire wit.out planning li0e in deplora1le conditions and so,eti,es stress t.e,sel0es furt.er to wor2 for additional inco,e. Indi0iduals w.o are financiall+ ill-prepared for retire,ent loo2 towards it wit. dread. 3.is is 1uttressed 1+ #rnstein (1D!5 & w.o stressed t.at retire,ent is feared ,ostl+ 1+ t.ose wit. erratic wor2 .istories and t.ose w.o

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Journal of Education and Practice ISSN 2222-1735 (Paper ISSN 2222-2!!" (#nline $ol.%& No.25& 2'13

www.iiste.org

do not .a0e sufficient funds for an ade6uate inco,e after retire,ent. 3.e need to prepare earl+ enoug. for retire,ent cannot 1e o0er-e,p.asi=ed. It will not onl+ ,a2e t.e e,plo+ee to sa0e and in0est 1ut also ena1le .i, to li0e a full span of life. *s #gwuc.e (2''@ puts it& retire,ent could 1e a ,ost e4citing producti0e p.eno,enon if properl+ planned. -ontinuing& s.e reiterated t.at planning for retire,ent in0ol0es putting oneAs priorit+ rig.t& sa0ing& training of self& c.ildren and wards and in0est,ent in owners.ip of propert+ suc. as lands and 1uildings. FINANCIA! P!ANNIN& STRAT#&I#S Pre- retire,ent planning is a ,ust for e0er+ wor2er. In t.is stud+& it is t.e planning of oneAs finances for t.e period of life after one .as stopped wor2ing. 5i0e strategies .a0e 1een discussed in t.is researc. and t.e+ include personal sa0ings account& fi4ed deposit account& co-operati0e societies& in0est,ent in s.ares and t.e new contri1utor+ pension sc.e,e. P#RSONA! SA IN&S ACCOUNT 3.is is one of t.e si,plest wa+s to set aside ,one+ for retire,ent. 3.e account pa+s interest on t.e 1alance and as ,ore ,one+ is paid into it& t.e interest will also increase. #2iti (2''@ stated t.at sa0ing at least 1'G of oneAs ,ont.l+ inco,e steadil+ will +ield a lot of ,one+ t.at will ,a2e t.e wor2er to li0e co,forta1l+ on retire,ent. *ccording to t.e *,erican Sa0ings Education -ouncil& t.e indi0idual will need 1etween 7' to D'G of .is annual pre- retire,ent inco,e to ,aintain .is current standard of li0ing upon retire,ent. 3.e+ went furt.er to suggest t.at sa0ing 5 to 1'G of .is net annual inco,e will ena1le t.e would-1e retiree to ac.ie0e .is financial goals w.en .e disengages fro, wor2. Fit,an (2''2 opined t.at for ,ost wor2ers& it is unrealistic to plan for inco,e e6ual to w.at t.e+ earned 1efore retire,ent. -ontinuing& .e pointed out t.at onl+ a .andful of wor2ers .a0e t.e financial resources to replace t.eir salaries. 3.is t.en suggests t.at ,aCorit+ of e,plo+ees .a0e little sa0ings. *ccording to ?i2ipedia& ,an+ Nigerian wor2ers find it difficult to sa0e ade6uatel+ for t.eir retire,ent as a result of t.eir ,eagre inco,e and .uge fa,il+ and social responsi1ilities. 5ro, e4perience& t.e researc.er .as disco0ered t.at ot.er sa0ing tec.ni6ues include sa0ing windfall inco,e and collecting loose c.ange. ?.ile t.e for,er in0ol0es sa0ing of ta4 refunds& 1onuses refunds and o0erti,e pa+& t.e latter .as to do wit. e,pt+ing oneAs purse e0er+ wee2 into a sa0e and depositing t.e content into +our sa0ings account. Hawrence (2''2 suggested ot.er sa0ing routines and t.ese are pa+ing instal,ents to oneself& frugalit+ and 1rea2ing a .a1it. FI'#D D#POSIT ACCOUNT OR C#RTIFICAT#S OF D#POSIT *ccording to 8oger (2''! & purc.asing certificates of deposit is anot.er wa+ wor2ers put aside ,one+ for t.eir retire,ent. Ee pointed out t.at t.ese certificates pa+ interest o0erti,e until t.e+ ,ature and at w.ic. ti,e t.e entire a,ount 1uilt up wit.in t.e certificate can 1e collected. *s a ,atter of fact& t.e fi4ed deposit account offers t.e .ig.est interest rates t.at are a0aila1le on an+ sa0ings < t+pe account. ?idicus and Stil=el (1D!D e,p.asi=ed t.at in return for t.e .ig. interest& t.e account .as to 1e of so,e ,ini,u, a,ount and t.e depositor .as to accept a lower interest rate if t.e certificate is redee,ed 1efore its ,aturit+ date. /ndou1tedl+& t.e longer t.e ,aturit+ of t.e certificate& t.e .ig.er t.e rate of interest. CO$OP#RATI # SOCI#TI#S OR CR#DIT UNIONS * credit union is a co-operati0e association w.ose ,e,1ers accu,ulate and pool sa0ings and ,a2e loans at reasona1le rates to one anot.er fro, t.e accu,ulated finds. (Fit,an& 1D7! . Ene1eli (2''@ descri1ed a co-operati0e societ+ as an association of persons w.o 0oluntaril+ co,e toget.er to ac.ie0e a co,,on econo,ic and social goal. 3.e a,ount to 1e sa0ed is deducted at source and interest is paid on t.e ,one+ at t.e end of t.e +ear. *ccording to Efa+ena (2''@ & t.is process of transferring a certain a,ount of ,one+ fro, oneAs salar+ to oneAs co-operati0e account is a 0er+ good wa+ of sa0ing ,one+. 3.is is 1ecause sooner or later& t.e ,one+ starts to accu,ulate and earn interest and in t.is wa+& t.e co-operator will .a0e sufficient inco,e to start a 1usiness or an+ ot.er 0enture wit. t.e .ope of graduall+ preparing for retire,ent. -o.en (1D!! opined t.at credit unions nor,all+ pa+ a .ig.er rate of interest on t.eir accounts t.an 1an2s and offer lower rates on loans. 3.e role of co-operati0e societies in Nigeria cannot 1e o0er-e,p.asi=ed. 3.e+ .a0e contri1uted i,,ensel+ to t.e socio-econo,ic de0elop,ent of t.e countr+. >uttressing t.is point& #ta+e (2''@ opined t.at co-operati0es assist in capital ,o1ili=ation t.roug. contri1ution of s.ares& t.rifts and 0oluntar+ deposits 1+ ,e,1ers. -ontinuing& .e stressed t.at co-operati0es pro0ide credit facilities to ena1le ,e,1ers e4ecute t.eir personal proCects or 1usiness 0entures. IN #ST%#NT IN S(AR#S S.ares are assets 1ut incidentall+& ,an+ wor2ers are ignorant of t.is. #loge (2''7 opined t.at s.ares are 0er+ 0alua1le assets t.at could 1e used as collateral for 1an2 loans& can 1e transferred to a new co,pan+ to increase its capital 1ase and also a ,ore lasting for, of sa0ing t.an a sa0ings account in a 1an2 w.ic. t.e wor2er ,ig.t 1e easil+ te,pted to draw down an+ti,e .eBs.e is cas. < trapped.

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Journal of Education and Practice ISSN 2222-1735 (Paper ISSN 2222-2!!" (#nline $ol.%& No.25& 2'13

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5urt.er,ore& #loge stated t.at a su1stantial s.are .olding in a co,pan+ t.at is doing 0er+ well can 1e a 0alua1le source of e4tra inco,e (in ter,s of di0idend pa+,ent . 8ogers (2''! pointed out t.at in0esting ,one+ in t.e stoc2 ,ar2et is a great wa+ to .elp put ,one+ aside for oneAs retire,ent. Ee .owe0er cautioned t.at wor2ers s.ould 1u+ s.ares in reputa1le 1an2s and co,panies. T(# N#) CONTRI*UTOR" P#NSION SC(#%# 3.e new sc.e,e was signed into law on t.e 25t. of June& 2''% 1+ Fen. #lusegun #1asanCo& t.e t.en President of t.e 5ederal 8epu1lic of Nigeria. It is ,andator+ for Nigerian wor2ers in pri0ate as well as pu1lic sector and it .as 1een e,1raced 1+ ,an+ state go0ern,ents. Sa0ing in t.e new contri1utor+ pension sc.e,e re6uires t.at a wor2er pa+s 7.5G of .isB.er ,ont.l+ salar+ and an additional 7.5G 1+ t.e e,plo+er. -o,,enting on t.e pension sc.e,e& *.,ed (2''7 said t.at it is people-centred and t.at t.e assets are safe and guaranteed. 5urt.er,ore& .e opined t.at t.e sc.e,e ensures structured sa0ing fro, wor2ersA salaries to cater for t.eir retire,ent. *ccording to t.e Pension 8efor, *ct (2''% & .it.erto& t.ere were t.e National Pro0ident 5und (NP5 and t.e Nigerian Social Insurance 3rust 5und (NSI35 1ot. of w.ic. .a0e collapsed for se0eral reasons suc. as e,1e==le,ent of pension funds and inade6uate funding. D#FINITION OF T#R%S 3.e following ter,s .a0e 1een defined operationall+. FINANCIA! P!ANNIN& STRAT#&I#S 3.ese are t.e 0arious tec.ni6ues or ,et.ods used 1+ would-1e retirees to sa0e for retire,ent. R#TIR#%#NT 8etire,ent can 1e defined as t.e disengage,ent of an e,plo+ee fro, acti0e ser0ice upon t.e attain,ent of t.e stipulated age and itAs so,eti,es c.aracteri=ed 1+ .ards.ip due to poor financial planning. POT#NTIA! R#TIR##S 3.ese are /ni0ersit+ lecturers w.o are still in t.e wor2force and not +et due for retire,ent. "OUN&#R !#CTUR#RS 3.ese are /ni0ersit+ teac.ers w.ose age range fro, 3' to %5 +ears. O!D#R !#CTUR#RS 3.ese lecturers are 1etween t.e ages of %@ and @5 +ears. STAT#%#NT OF T(# PRO*!#% /ndou1tedl+& one of t.e features of retire,ent is a fall in inco,e and t.is ,a2es ,an+ retirees li0e in a1Cect po0ert+. -onse6uentl+& t.e+ suffer p.+sicall+ and ps+c.ologicall+. 3.is state of affairs ,a+ .a0e resulted fro, lac2 of plans for retire,ent. 3.e pro1le, of t.is stud+ t.erefore is to e4a,ine so,e strategies t.roug. w.ic. potential retirees can sa0e towards retire,ent so t.at t.e+ can enCo+ t.at golden period of t.eir li0es to t.e fullest. R#S#ARC( +U#STIONS 5i0e researc. 6uestions were raised to guide t.e stud+I 1. ?.at is t.e difference 1etween lecturers in State and 5ederal /ni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+ towards retire,entJ 2. Is t.ere an+ difference 1etween lecturers in Pu1lic and Pri0ate /ni0ersities in t.eir perception of t.e use of fi4ed deposit account as a financial planning strateg+ towards retire,entJ 3. ?.at is t.e difference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of co-operati0e societies as a financial planning strateg+ towards retire,entJ %. Is t.ere an+ difference 1etween lecturers in State and Pri0ate /ni0ersities in t.eir perception of in0est,ent in s.ares as a financial planning strateg+ towards retire,entJ 5. ?.at is t.e difference 1etween older and +ounger lecturers in t.eir perception of t.e New -ontri1utor+ Pension Sc.e,e as a financial planning strateg+ towards retire,entJ ("POT(#S#S 5i0e .+pot.eses were for,ulated for t.e stud+. 3.ese are as followsI Eo1I 3.ere is no significant difference 1etween lecturers in State and 5ederal /ni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+ towards retire,ent. Eo2I 3.ere is no significant difference 1etween lecturers in Pu1lic and Pri0ate /ni0ersities in t.eir perception of t.e use of fi4ed deposit account as a financial planning strateg+ towards retire,ent. Eo3I 3.ere is no significant difference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of cooperati0e societies as a financial planning strateg+ towards retire,ent. Eo%I 3.ere is no significant difference 1etween lecturers in State and Pri0ate /ni0ersities in t.eir perception of in0est,ent in s.ares as a financial planning strateg+ towards retire,ent. 3.ere is no significant difference 1etween older and +ounger lecturers in t.eir perception of t.e New Eo5I -ontri1utor+ Pensions Sc.e,e as a financial planning strateg+ towards retire,ent.

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Journal of Education and Practice ISSN 2222-1735 (Paper ISSN 2222-2!!" (#nline $ol.%& No.25& 2'13

www.iiste.org

R#S#ARC( %#T(ODS AND PROC#DUR# 3.e researc.er adopted e4-post facto researc. design for t.e stud+. 3.e population co,prised all lecturers in 5ederal& State and Pri0ate /ni0ersities in t.e Niger (elta. 3.e instru,ent tagged 75inancial Planning Strategies towards 8etire,ent 9uestionnaire: (5PS389 wit. a relia1ilit+ of '.!% was ad,inistered on a total of 25' lecturers rando,l+ selected fro, fi0e uni0ersities. 227 lecturers returned t.eir 6uestionnaire s.owing D'.!G retrie0al rate. 3.e 6uestionnaire was ,ade up of two sectionsK Section * contained 6uestions on 1iograp.ic data suc. as na,e of uni0ersit+& ran2 of lecturer& age and gender& w.ile Section > consisted of 1' ite,s indicati0e of t.e financial planning strategies for retire,ent. 3.e instru,ent was 0alidated 1+ e4perts in )easure,ent and E0aluation /nit in t.e (epart,ent of -ounselling Ps+c.olog+& (elta State /ni0ersit+ and found suita1le for use. 3.e researc.er utili=ed t.e = < test statistics to test t.e .+pot.eses at '.'5 le0el of significance. PR#S#NTATION OF R#SU!T AND DISCUSSION 3.e findings of t.e stud+ .a0e 1een reported in fi0e ta1les as followsI R#S#ARC( +U#STION ON# ?.at is t.e difference 1etween lecturers in State and 5ederal /ni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+ towards retire,entJ ("POT(#SIS ON# 3.ere is no significant difference 1etween lecturers in State and 5ederal /ni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+ towards retire,ent. TA*!# I (ifference 1etween Hecturers in State and 5ederal /ni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+. 8ESP#N(EN3S N S.( L L SIFNI5I-*N3 (E-ISI#N 4 -*H -8I3 HE$EH Hecturers in State !5 5.'' D.3' Significant /ni0ersities Hecturers in 5ederal D5 1'.'2 @.1' -%.22 1.D@ '.'5 /ni0ersities 3a1le I a1o0e s.owed t.at t.e calculated = < 0alue of -%.22 is greater t.an = < critical 0alue of 1.D@ at '.'5 le0el of significance. 3.erefore& t.e null .+pot.esis w.ic. states t.at t.ere is no significant difference 1etween lecturers in State and 5ederal /ni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+ towards retire,ent is reCected. R#S#ARC( +U#STION T)O Is t.ere an+ difference 1etween lecturers in Pu1lic and Pri0ate /ni0ersities in t.eir perception of t.e use of fi4ed deposit account as a financial planning strateg+ towards retire,entJ ("POT(#SIS T)O 3.ere is no significant difference 1etween lecturers in Pu1lic and Pri0ate /ni0ersities in t.eir perception of t.e use of fi4ed deposit account as a financial planning strateg+ towards retire,ent. TA*!# , (ifference 1etween Hecturers in Pu1lic and Pri0ate /ni0ersities in t.eir perception of t.e use of fi4ed deposit account as a financial planning strateg+. 8ESP#N(EN3S N S.( L L SIFNI5I-*N3 (E-ISI#N 4 -*H -8I3 HE$EH Hecturers in Pu1lic 1!' '.D5 21.!% /ni0ersities Hecturers in Pri0ate %7 2.@% 3.7' -'.DD 1.D@ '.'5 N. S. /ni0ersities 3.e data on ta1le 2 indicated a difference in t.e ,ean perception of lecturers in Pu1lic and Pri0ate /ni0ersities regarding t.e use of fi4ed deposit account as a financial planning strateg+ towards retire,ent. 3.is is so 1ecause t.e calculated = < 0alue of -'.DD is less t.an t.e critical = < 0alue of 1.D@ at '.'5 le0el of significance. 3.erefore& t.e null .+pot.esis is retained. R#S#ARC( +U#STION T(R## ?.at is t.e difference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of co-operati0e societies as a financial planning strateg+ towards retire,entJ ("POT(#SIS T(R## 3.ere is no significant difference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of co!7

Journal of Education and Practice ISSN 2222-1735 (Paper ISSN 2222-2!!" (#nline $ol.%& No.25& 2'13

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operati0e societies as a financial planning strateg+ towards retire,ent. TA*!# (ifference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of co-operati0e societies as a financial planning strateg+. 8ESP#N(EN3S N S.( L L SIFNI5I-*N3 (E-ISI#N 4 -*H -8I3 HE$EH )ale Hecturers 1%@ %.1' 13.7@ '.35 1.D@ '.'5 N. S. 5e,ale Hecturers !1 3.@' 7.5' *n inspection of 3a1le 3 s.owed t.at t.ere is a difference in t.e ,ean perception of ,ale and fe,ale lecturers as regards t.e use of co-operati0e societies as a financial planning strateg+ towards retire,ent. >ut t.e difference is not significant as t.e calculated = < 0alue of '.35 is less t.an t.e critical = < 0alue of 1.D@. 3.erefore& t.e null .+pot.esis w.ic. states t.at t.ere is no significant difference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of co-operati0e societies as a financial planning strateg+ towards retire,ent is accepted. R#S#ARC( +U#STION FOUR Is t.ere an+ difference 1etween lecturers in State and Pri0ate /ni0ersities in t.eir perception of t.e use of In0est,ent in s.ares as a financial planning strateg+ towards retire,entJ ("POT(#SIS FOUR 3.ere is no significant difference 1etween lecturers in State and Pri0ate /ni0ersities in t.eir perception of In0est,ent in s.ares as a financial planning strateg+ towards retire,ent. TA*!# . (ifference 1etween lecturers in State and Pri0ate /ni0ersities in t.eir perception of t.e use of in0est,ent in s.ares as a financial planning strateg+. 8ESP#N(EN3S N S.( L L SIFNI5I-*N3 (E-ISI#N 4 -*H -8I3 HE$EH Hecturers in State !5 1.!' 12.%5 /ni0ersities -'.%% 1.D@ '.'5 N.S. Hecturers in Pri0ate %7 2.%D 5.57 /ni0ersities 3.e result on 3a1le % .as indicated a difference in t.e ,ean perception of lecturers in State and Pri0ate /ni0ersities concerning in0est,ent in s.ares as a financial planning strateg+ towards retire,ent. 3.e difference in t.e ,ean is not significant 1ecause t.e calculated = < 0alue of -'.%% is lower t.an t.e critical = < 0alue of 1.D@ at '.'5 le0el of significance. 3.erefore& t.e null .+pot.esis w.ic. states t.at t.ere is no significant difference 1etween lecturers in State and Pri0ate /ni0ersities in t.eir perception of in0est,ent in s.ares as a financial planning strateg+ towards retire,ent is accepted. R#S#ARC( +U#STION FI # ?.at is t.e difference 1etween older and +ounger lecturers in t.eir perception of t.e use of t.e New -ontri1utor+ Pension Sc.e,e as a financial planning strateg+ towards retire,entJ ("POT(#SIS FI # 3.ere is no significant difference 1etween older and +ounger lecturers in t.eir perception of t.e use of t.e New -ontri1utor+ Pension Sc.e,e as a financial planning strateg+ towards retire,ent. TA*!# / (ifference 1etween older and +ounger lecturers in t.eir perception of t.e use of t.e New -ontri1utor+ Pension Sc.e,e as a financial planning strateg+. 8ESP#N(EN3S N 4 S.( L -*H L -8I3 SIFNI5I-*N3 HE$EH (E-ISI#N

#lder Hecturers 12! 1.@5 1%.%3 '.'5 1.D@ '.'5 N.S. Mounger Hecturers DD 1.5@ 1'.%% 3a1le 5 re0ealed a difference in t.e ,ean perception of older and +ounger lecturers regarding t.e use of t.e New Pension Sc.e,e as a financial planning strateg+ towards retire,ent. Eowe0er& t.e difference is not significant 1ecause t.e calculated = < 0alue of '.'5 is lower t.an t.e critical = < 0alue of 1.D@. 3.erefore& t.e null .+pot.esis w.ic. states t.at t.ere is no significant difference 1etween older and +ounger lecturers in t.eir perception of t.e use of t.e New -ontri1utor+ Pension Sc.e,e as a financial planning strateg+ is retained. DISCUSSION 5ro, t.is stud+& it was o1ser0ed t.at t.ere is significant difference 1etween lecturers in State and 5ederal uni0ersities in t.eir perception of t.e use of personal sa0ings account as a financial planning strateg+ !!

Journal of Education and Practice ISSN 2222-1735 (Paper ISSN 2222-2!!" (#nline $ol.%& No.25& 2'13

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towards retire,ent. 3.is is in line wit. ?i2ipedia t.at pointed out t.at ,an+ wor2ers find it difficult to sa0e ade6uatel+ for t.eir retire,ent as a result of t.eir ,eagre inco,e. >ut t.e finding is at 0ariance wit. #2iti (2''@ w.o stated t.at sa0ing at least 1'G of oneAs ,ont.l+ inco,e steadil+ will +ield a lot of ,one+ t.at will ,a2e t.e wor2er to li0e co,forta1l+ on retire,ent. 3.is stud+ .as also disco0ered t.at t.ere is no significant difference 1etween lecturers in pu1lic and pri0ate uni0ersities in t.eir perception of t.e use of fi4ed deposit account as a financial planning strateg+ towards retire,ent. 3.is result supports t.e 0iew of 8ogers (2''! w.o opined t.at purc.asing certificates of deposit is anot.er wa+ wor2ers put aside ,one+ for t.eir retire,ent. 5urt.er,ore& t.e t.ird finding indicated t.at t.ere is no significant difference 1etween ,ale and fe,ale lecturers in t.eir perception of t.e use of co-operati0e societies as a financial planning strateg+ towards retire,ent. It lends credence to Efa+ena (2''@ w.o stated t.at t.e process of transferring a certain a,ount of ,one+ fro, oneAs salar+ to oneAs co-operati0e account is a 0er+ good wa+ of sa0ing ,one+. -ontinuing& .e said t.at sooner or later& t.e ,one+ starts to accu,ulate and earn interest and in t.is wa+& t.e co-operator will .a0e sufficient inco,e for retire,ent. *not.er result of t.is researc. .as re0ealed t.at t.ere is no significant difference 1etween lecturers in state and pri0ate uni0ersities in t.eir perception of in0est,ent in s.ares as a financial planning strateg+ towards retire,ent. 3.is agrees wit. #loge (2''7 w.o stressed t.at s.ares are a ,ore lasting for, of sa0ing t.an a sa0ing account in a 1an2 w.ic. t.e wor2er ,ig.t 1e easil+ te,pted to draw down an+ti,e .eBs.e is cas. < strapped. 3.e fift. and t.e last finding of t.is stud+ s.owed t.at t.ere is no significant difference 1etween older and +ounger lecturers in t.eir perception of t.e use of t.e New -ontri1utor+ Pension Sc.e,e as a financial planning strateg+ towards retire,ent. 3.is supports t.e 0iew of *.,ed (2''7 w.o e,p.asi=ed t.at t.e sc.e,e ensures structured sa0ings fro, wor2ersA salaries to cater for t.eir retire,ent. CONC!USION 3.e conclusion t.at can 1e drawn is t.at if lecturers w.o are still ser0ing utili=e t.e 0arious financial strategies to put aside so,e ,one+ for retire,ent& t.e+ will loo2 forward to an e4citing& ,eaningful and successful retire,ent life. COUNS#!!IN& I%P!ICATIONS *n i,plication of t.is stud+ is t.at pre-retire,ent counselling is i,perati0e for would-1e retirees in Nigerian uni0ersities and it could ta2e t.e for, of indi0idual counselling& group counselling or group guidance progra,,e suc. as se,inars and wor2s.ops. 3.e essence of pre-retire,ent counselling is to create awareness on retire,ent and to assist lecturers to sa0e for t.e period of t.eir disengage,ent fro, wor2. 3.ere is t.erefore t.e need for e,plo+ers of la1our (in t.is case& t.e state and federal go0ern,ent and proprietors of pri0ate uni0ersities to ,a2e funds and ot.er facilities a0aila1le to professional counsellors in /ni0ersitiesA counselling centres so as to successfull+ pro0ide t.is all-i,portant ser0ice. R#CO%%#NDATIONS 1. #n a regular 1asis& counsellors s.ould organise wor2s.ops for uni0ersit+ lecturers on t.e i,portance of personal sa0ing so as to accu,ulate sufficient fund for t.eir retire,ent +ears. 2. -o,petiti0e spending during social functions s.ould 1e .ig.l+ discouraged. 3. 3.ere s.ould 1e ,ont.l+ 1udgeting 1+ indi0idual lecturers so as to c.ec2 unnecessar+ purc.ase. %. Since operating a fi4ed deposit account is a tec.ni6ue of financiall+ preparing for retire,ent& lecturers s.ould .eartil+ e,1race suc. idea. 5. /ni0ersit+ dons are to i,1i1e t.e culture of sa0ing t.roug. cooperati0e societies 1ecause t.e+ pa+ .ig.er rates of interest t.an 1an2s and offer lower rates on loans wit. w.ic. lecturers can esta1lis. 1usiness or ot.er 0enturesK all preparator+ to retire,ent. @. Hecturers s.ould 1e encouraged to in0est in s.ares in reputa1le 1an2s and co,panies 1ecause w.en suc. s.ares appreciate o0erti,e& sufficient inco,e will accrue to t.e, w.ic. will .elp to cus.ion t.e effect of retire,ent. 7. 3.e New -ontri1utor+ Pension Sc.e,e ensures structured sa0ings fro, wor2ers salaries to cater for t.eir retire,entK t.erefore lecturers s.ould 1e part of it. R#F#R#NC#S *c.ig1e& ).#. (1DD! 3.e Effect of Hac2 of 8etire,ent Plan on Self-8eliance and (esire to ?or2 *,ong 8etired Pu1lic Ser0ants of -ross 8i0er State. * paper presented at t.e 22nd *nnual National -onference of -ounselling *ssociation of Nigeria (-*SS#N . *2inade& E.*. (1DD3 3owards Satisfactor+ 8etire,entI * Socio-Ps+c.ological *pproac. Hagos. Nola #2anlawon Ser0ices Htd. *2inade& E.*. (2''@ 3owards Successful and Jo+ful 8etire,ent& I1adanI #lu-*2in Pu1lis.ers.

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*.,ed& ).N. (2''7 7I,perati0es for Nigeria Pension 8efor,s: $anguard (ail+ Newspaper& 3.ursda+& #cto1er %. *,erican Sa0ings Education -ouncil 7Sa0ing 3ool: wit. a 0eriet+ of ?or2s.eets to .elp wit. retire,ent planning and sa0ing. www.asec.org -o.en& J. (1DD! Personal 5inance (3rd Edition & /.S.*I Hearning S+ste, -o,pan+. Efa+ena& #. (2''@ )anaging Personal 5inances and -.oosing t.e 8ig.t In0est,ent. * paper presented at t.e Se,inar #rganised 1+ t.e (elta State /ni0ersit+ ?or2ersA )ulti-Purpose -o-operati0e Societ+& *1ra2a. Ene1eli& * (2''@ Fo0ern,ent and -ooperati0e Societ+As Partners.ip for Sustaina1le (e0elop,ent. * Ne+note *ddress presented at t.e Se,inar organised 1+ t.e (elta State /ni0ersit+ ?or2ersA )ulti-purpose -o-operati0e Societ+& *1ra2a. 5ederal 8epu1lic of Nigeria (2''% & Pension 8efor, *ct 2''%& HagosI 3.e 5ederal Fo0ern,ent Press of Nigeria. Fit,an& H.J. (1D7! Personal 5inance IllinoisI (r+den Press. Fit,an& H.J. (2''2 Personal 5inancial Planning Sout. < ?estern 3.o,son Hearning. #de& 3.*. (2''% -ounselling for 8etire,ent *dCust,ent. * Paper presented at t.e 2!t. *nnual& National -onference of -ounselling *ssociation of Nigeria (-*SS#N )aiduguri. #gung1e,i& #. (2''3 3.e -.allenge of 8etire,ent. I1adanI (an Jones I8?IN& ?.ine+ -o,,unication -o,pan+. #gwuc.e& #.-. (2''@ Pre-8etire,ent -ounsellingI * Panacea for acti0e Political Participation in Nigeria. * Paper presented at t.e 3't. *nnual National -onference of t.e -ounselling *ssociation of Nigeria (-*SS#N & )inna. #2iti& 8. (2''@ Preparing for 8etire,ent. * paper presented at t.e Se,inar #rganised 1+ t.e (elta State /ni0ersit+ ?or2ersA )ulti-Purpose -o-operati0e Societ+& *1ra2a. #loge& N.#. (2''7 Mou (onAt Ea0e to 1e ric. to in0est in s.a0es and ,a2e ,one+& *1uCaI I,pact -onsult Hi,ited. #ta+e& P.#.E. (2''@ -o-operati0e SocietiesI Eistor+& (e0elop,ent and 8ole in -onte,porar+ Nigeria. * paper presented at t.e Se,inar organised 1+ t.e (elta State /ni0ersit+ ?or2ersA )ulti-Purpose -o-operati0e Societ+& *1ra2a. #rnstein& 8. (1D!5 Ps+c.olog+I 3.e Stud+ of Eu,an E4perience& 5loridaI Earcourt >race Jo0ano0ic. Pu1lis.ers. 8ogers& P. (2''! ?a+s to Sa0e for +our retire,ent& .ttpIBBe=inearticles.co,. ?i2ipedia O8etire,ent: www.wi2ipedia.co, ?idicus& ?.?. and Stil=el& 3.E. (1D!D Personal In0esting (5t. Edition /.S.*. Irwin Inc.

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