Abstract
Two of the hottest topics of recent times have been retirement and retirement
planning. Medical advancements of the 21st century have contributed in different
areas including a rise in the life expectancy of humans. However, with an increase
in life expectancy comes the need to make provision for those golden years after a
long working life, hence the need for retirement planning. Different forms of
investment vehicles have been used in addressing this need. In most countries, the
lens has been further zoomed in to pay attention to compulsory savings and ways in
which it can be used to address the retirement shortfall. However, more concerns
have been raised on the impact compulsory savings will have on voluntary savings,
suggesting overall retirement savings will not increase should compulsory savings
increase. This will only lead to reshuffling of retirement savings with more money
going to compulsory savings and less money into voluntary savings. These are
issues to be considered, but the ultimate goal is for retirees to be able at least to
maintain their standard of living prior to retirement. It is in that regard that this study
focuses on the impact of compulsory savings and retirement planning on life
satisfaction. Structural equation modelling results revealed that retirement planning
drove compulsory savings and life satisfaction.
Although financial measures have always been used in capturing aspects of
retirement success, financial success in itself is not the goal, but rather a contributing
factor to quality of life after retirement. As a result, it is essential to look at other
factors such as health and psychological aspects that may be introduced into
retirement planning with the aim of bringing overall life satisfaction.
M.Com. (Business Management)