This work aimed at evaluating the impact of pension insurance on the socio-economic life of the retired population in Buea-Cameroon. The objectives of the study were to appraise the policies and procedures used to obtain old age pension and old age allowance, and to assess the impact of old age pension and old age allowance on the socio-economic life of the retired population in Cameroon, precisely the Buea municipality. To achieve these objectives, the researcher came out with methods of data collection which included questionnaires that were administered to respondents in Buea and interviews. The said data were analysed with the help of simple regression and it was discovered from the analyses that an increase in old age pension and old age allowance will better off the socio-economic life of the retired population. Moreover, this relationship also portrays that, a fall in old age pension and old age allowance will worsen off the socio-economic life of the retired population. From these findings, the researcher recommends that, the National Social Security Fund should be able to hold seminars and give advices to the retired population on how they could better manage their retirement income, which will enable them to meet up their standard of living and satisfy their basic necessities such as their health, children’s education, feeding and many others.
Pension insurance is defined as retirement benefit paid frequently with the amount based usually on the duration of employment and the amount of pay that the pensioners used to have during active service. In terms of both the number of recipients and of total expenditure, the retirement pensions are undoubtedly the most important benefit provided by the Cameroon “Social Security System” [
It was resisted however, by the charity organization society [
Social welfare [
Societies were gradually won over to support noncontributory pensions to be financed by taxation and in 1906, Asquith the chancellor of exchequer promised to introduce old age pension [
Although many aspects of the scheme appear now redundant, at least the principle was established that in certain circumstances, anyone over 70 was entitled to support from the state.
In the 1900s, pension law in its modern form was not known in Cameroon. Instead the people engaged in mutual and social undertakings. For instance in matters of agriculture, the extended family operated as a social undertaking. As product increased a farmer could call upon a whole village or group of persons notably a njangi group to work on his farm. Such groups were not paid but were treated to food and drinks as assign of gratitude or compensation for the work done. This self-reliance scheme could not keep pace with the establishment of large plantations and industries as colonization took roof. Permanent workers were being recruited and had to be paid salaries and wages. The introduction of plantations in British Cameroon came with large scale employment of workers who abandoned their own farms to work for their new employers. As these plantations were established along the coastal line, notably Victoria, this resulted in the migration of Cameroonians especially from the Bamenda hinterlands [
The first attempt in British Cameroon to draw up a beneficial pension scheme [
From the above analyses, the modern society drew inspiration from the traditional society insurance approach to design a scheme that affords citizens adequate social security [
At the organizational level, the NSIF is made up of the central services located in the head quarter in Yaounde and external services spread throughout the national territory. Today the institution numbers ten (10) regional centers located in each regional headquarters of Cameroon, twelve (12) divisional centers, four (4) branches and eight (8) periodic payment centers. With this decentralization of services, the NSIF can reach out to all segments of the society and ensure adequate coverage.
The National Social Insurance Fund deals essentially with two categories of users, namely the wage earner and members of his family or rightful claimants and employers.
A couple of years back, individuals, precisely the old during their young age, dedicated their energy and their life in working on their farm lands which was a source of livelihood for themselves and their families. They engaged in mutual and social undertakings, which mean that as product increased, a farmer will call upon a group of persons to work on his farm. Such groups were not paid but were treated with food and drinks as a sign of gratitude.
With the coming of industrialization, there was a shift from people working solely on their farm lands, to factories, which made people leave their homes and families to work for others. When they got old, they were sent back to their families where they depended on, for their old age. This situation created a lot of worries until pension was introduced. Even today, while some employers provide old age pension facilities to take care of the retired person at old age, other employers fail to do so. Even till date some employers with the presence of legislation, which obliges them to make provisions for registering their employees for pension insurance with the pension fund.
Contributing pension to the pension fund is good and will be very beneficial for the retired population. But the long procedure and policies put in place in order to receive this income after completing 180 months of work and after attaining 60 years, is a setback in our society today which goes a long way to affect the socio-economic life of the retired population.
With the coming of the pension fund, its main aim is to provide benefits to the retired populations who have been registered with it so that individuals will be able during retirement, to meet up their basic needs and maintain their economic standard of living. But some old people today during retirement and receiving pension insurance, are still unable to meet up their basic necessities such as feeding, paying their children’s fees, shelter, clothing, health and many others, which is a major problem in our society today.
It is against this backdrop that the research intends to investigate the impact of pension insurance on the socio economic life of the aging population. Precisely, the old people who are retired and are receiving pension in the Buea locality. In order to assess the effect of old age pension on the retired population, the researcher poses the following research questions:
1) What are the policies and procedures put in place for the recovery of old age pension and old age allowance?
2) What is the impact of old age pension and old age allowance on the socioeconomic life of the aging population in Cameroon?
The main objective of this study is to investigate the impact of pension insurance on the socio economic life of the aging population in Buea.
To achieve this overall objective, the specific objectives of the research are:
1) To appraise the policies and procedures for the recovery of old age pension and old age allowance.
2) To analyze the impact of old age pension and old age allowance on the socioeconomic life of the aging population.
The research design adopted for this research, was a descriptive research, which describes existing conditions or the state of a subject been studied. Here, we describe importance and the role pension insurance plays in the socio economic life of the aging population. Under this study, the researcher tries to make a description of the procedures and policies needed to be eligible and obtain pension insurance and allowance, how it can affect the socio economic life of the aging population in Cameroon. The sample size used from the study of the population, was with the help of the Purposive Random Sampling of eighty questionnaires but only sixty were responded to. Based on our study, we developed this simple linear regression model
This implies;
where,
SEL = Socio-economic life of the Aging Population.
PA = Pension and Allowance.
B0, B1 = Parameters of variables in the model.
µ = Error or Stochastic term.
The type of questionnaire used for this research was open ended and close ended. Eighty questionnaires were administered to those receiving pension and to some officials of the pension fund. Interview was carried out with the pension officials in NSIF Buea and the aging population. The research used both the primary and secondary methods of data collection. With regard to the primary method of data collection, two techniques were employed: questionnaire and interview.
With regard to questionnaire, lists of questions were structured using open ended and closed ended questions, were distributed to respondents. Questionnaires were administered to the retired people in Buea, who are receiving old age pension and old age allowance. These questionnaires were structured in a manner that requested for immediate and easy response. The questionnaires took into consideration their socio-demographic characteristics such as; age, sex and job before retirement. Twenty items were considered in the questionnaires which made it very reliable. Primary data was also collected through interviews. The researcher interviewed a sample population of Cameroonians in Buea. Particularly those who could not read nor write. And this provided a lot of useful information.
The methodology used for this research is quantitative technique precisely, descriptive statistics and regression analyses. This is because it will be used to compare two variables which are pension insurance and socio-economic life. Pension insurance being the independent variable and socio-economic life being the dependent variable. The method of data presentation adopted in this study is the use of tables, bar chart, pie chart, and clustered column.
A total of 80 questionnaires were sent out and 60 were fully answered and returned from Buea. The ages of the respondents were between 60 and above, both male and female. Their sex distribution is represented in
From
1) Objective one: To appraise the policies and procedures for the recovery of old age pension and allowance.
This section presents results on the first objective that was to find out the policies and procedures needed, for the recovery of old age pension and old age allowance in Cameroon. This objective was studied by determining whether it is easy and less expensive to compile the documents to obtain pension, and to know whether the procedures for receiving this income is often lengthy (
Sex | Respondents | Percentages (%) |
---|---|---|
Male | 50 | 62.5% |
Female | 10 | 37.5% |
Total | 60 | 100% |
Source: field survey (2015).
Age | Respondents | Percentages (%) |
---|---|---|
60 - 70 | 45 | 75% |
71 and Above | 15 | 25% |
Total | 60 | 100% |
Source: field survey (2015).
Options | Pension and Allowance | Percentages % |
---|---|---|
Agree | 5 | 8.3% |
Strongly agree | 4 | 6.7% |
Disagree | 40 | 66.7% |
Strongly disagree | 11 | 18.3% |
Total | 60 | 100 |
Source: field survey (2015).
According to the respondent from Buea, 18% strongly disagree the fact that it is easy and less costly to compile the documents needed to obtain old age pension and allowance. 67% of the respondent disagree the idea that it is easy and less costly to compile the documents to obtain old age pension and old age allowance. On the other hand, 7% strongly agree that it is easy and less costly to compile the documents. Moreover, 8% agree it is easy and less costly to compile documents to obtain pension insurance and allowance (
According to the respondent from Buea, 12% strongly disagree the idea which says the procedure for obtaining old age pension and allowance is often lengthy. Moreover, 20% of the respondents disagree with the notion that the procedure for obtaining old age pension and allowance is lengthy. On the other hand, 25% strongly agree that the policies and procedures needed to obtain pension insurance and allowance is long. In addition to this, 43% of the respondents agree on the idea of policies and procedures being lengthy (
Options | Pension Allowance and | Percentages % |
---|---|---|
Agree | 26 | 43.3% |
Strongly agree | 15 | 25% |
Disagree | 12 | 20% |
Strongly disagree | 7 | 11.7% |
Total | 60 | 100% |
Source: field survey (2015).
2) Objective two: To analyze the effect of old age pension on the socio-economic life of the aging population.
This section presents results on the second objective which is to analyze the impact of old age pension on the socio-economic life of the aging population in Buea-Cameroon. This objective was studied by determining whether old age pension has been beneficial to the aging population. In addition to this, how beneficial and useful, the income has been to the old age population (
3) The income received as old age allowance and pension is beneficial to the retired population.
According to the respondent in Buea, 100% use their pension for their health, 82.5% use their income for their children’s education. Moreover, 55% of those receiving old age pension use the income to expand their businesses, while 37.5% use the money to start up new businesses (
4) Objective three: To analyze the effect of old age allowance on the socio-economic life of the aging population.
This section presents results on the second objective which is to analyze the impact of old age allowance on the socio-economic life of the aging population in Buea. This objective was studied by determining whether old
Options | Pension and Allowance | Percentages % |
---|---|---|
Yes | 44 | 73.3% |
No | 16 | 26.6% |
Total | 60 | 100% |
Source: field survey (2015).
Options | Old Age Pension | Percentages % |
---|---|---|
Their health | 40 | 100% |
Children’s education. | 33 | 82.5% |
Helped to expand their business | 22 | 55% |
Helped to start up a new business | 15 | 37.5% |
Source: field survey (2015).
age allowance has been beneficial to the aging population. In addition to this, how beneficial and useful, the income has been to the old age population (
According to the respondent in Buea, 100% use their income for their health, 75% use their income for their children’s education. Moreover, 40% of those receiving old age allowance use the income to expand their businesses, while 50 % use the money to start up new businesses (
Options | Old Age Allowance | Percentages % |
---|---|---|
Their health | 20 | 100% |
Children’s education. | 15 | 75% |
Helped to expand their business | 8 | 40% |
Helped to start up a new business | 10 | 50% |
Source: field survey (2015).
From our regression, we notice that there are 40 observations, with the degree of freedom being 1. The Adjusted R Square is 0.269678718 and the F statistics is 15.4011. The probability of F or P > F = 0.0003 (
We can notice from our regression results above that, the coefficient of old age pension and old age allowance is positive. This implies that old age pension and old age allowance has a direct relationship with the socio-economic life of the aging population. In other words, an increase in old age pension and old age allowance, will lead to an increase in the living standard of the aging population and a decrease in old age pension and old age allowance, will lead to a decrease in the living condition of the aging population.
In addition to this, we can notice that our Adjusted R Square is approximately 0.27. This means old age pension and old age allowance, accounts for 27% variability in the socio-economic life of the aging population. We can observe that our F statistics is 15.4 and P > F = 0.0003. This means that the variables in our model are 99% reliable. Hence, our model best fits the regression line. This is confirmed by the F Statistics, which is significant at 5%.
For the purpose of this study, the hypotheses available were as follows
H0: Pension insurance has no significant effect on the socio economic life of the retired population.
H1: Pension insurance has a significant effect on the socio economic life of the retired population.
From our regression results, we observed a calculated T-Statistics of 3.924. Comparing this with our tabulated T-Statistics, thus falls between 2.021 and 2.042. We notice that the calculated T-Statistics is greater than the tabulated T-Statistics. That is, (3.924 > (2.021 > t < 2.042)). Therefore, we reject the null hypothesis which states that, H0; Pension insurance has no significant effect on the socio-economic life of the aging population. And accept the alternative which states, H1; Pension Insurance has a significant effect on the socio-economic life of the aging population.
The main objective of the study was to assess the effect of pension insurance on the socio-economic life of the aging population. Now looking at this objective, it was discovered in the results that there exist a strong relationship between pension insurance and socio-economic life. This means, an increase in old age pension and old age allowance will better off the socio-economic life of the aging population. Moreover, this relationship also portrays that, a fall in old age pension and old age allowance will worsen off the socio-economic life of the aging population. Therefore, from our findings, even if it is believed that Pension insurance is very important because it has a great impact on the socio-economic life of the aging population, there are other factors which may include poverty that also affects or has an influence on the socio-economic life of the aging population. In addition
Regression Statistics | |
---|---|
Multiple R | 0.53703343 |
R Square | 0.288404905 |
Adjusted R Square | 0.269678718 |
Standard Error | 0.303155806 |
Observations | 40 |
Socio Economic Life | Coefficients | Standard Error | t Stat | P-value |
---|---|---|---|---|
Intercept | 0.418045113 | 0.154027425 | 2.714095317 | 0.009936278 |
Pension and Allowance | 1.255639098 | 0.319954471 | 3.924430539 | 0.000353131 |
to this, from our findings, we can say that the procedures for obtaining old age pension and old age allowance is lengthy and it entails a lot to compile the documents needed to obtain this income.
Compared to previous studies, failing to account for the reduction in pension wealth implies a substantial underestimation of dissaving in retirement. A number of other studies, however, have found out that to sustain life and cope with old age risk, saving including accumulating and selling assets, and storing goods for future consumption [
One of the major limitation to this study was the unwillingness of some retired persons to respond to questionnaires. As a result, this affected the volume of data and sample size the research earlier predicted.
Pension Insurance is a very broad topic and there is need for future research in the areas of social protection of the elderly [
Longevity insurance should be added as a benefit provided by the Social Pension [
Considering the problem statement of this research and the objectives of this study, a conclusion can be drawn that, the income that the retired population receive as old age pension and old age allowance after completing 180 months and attaining 60 years, in one way or the other, has an impact on their socio-economic life. But still, with the presence of pension insurance, some of these aging people are still unable to satisfy their basic necessities and meet up with certain standard of living. This is because, the income given as old age pension and old age allowance is relatively small, and also due to the long and costly procedure to compile the documents in order to obtain old age pension and old age allowance, also, turn to affect the socio-economic life of the aging population.
The National Social Security Fund should be able to hold seminars and give advice to the retired population on how they could better manage their retirement income, which will enable them to meet up their standard of living and satisfy their basic necessities such as, their health, children’s education, feeding and many others.
The law which states that the maximum amount that a retired person can receive as pension which is 300,000 frs cfa, serving as a basis for deducting social contributions of the pension branch, no matter the number of years one contributes pension insurance and the amount one has as salary, should be ratified.
To reduce poverty and to maintain a high standard of living at retirement, most people during their working life and contributing pension to the fund, should save more [
Old age pension and old age allowance should be increased. This means that the fixed percentage, which is usually 30%, used to calculate one’s average monthly wage to be received as pension, should be increased, and that a progressive percentage system should be adopted. That is, those earning low income as salary, their pension should be calculated at 40%. While those earn very high income as salary, their percentages should be maintained at 30%.
Abia Elisabeth Achancho, (2016) An Assessment of Pension Insurance on the Socio-Economic Life of the Retired Population in Buea-Cameroon. Open Journal of Social Sciences,04,192-202. doi: 10.4236/jss.2016.44028