Contributory Pension Scheme and The Fear of Retirement Among Nigerian Public Servants

The shift from the Defined Benefit (DB) pension arrangement to the Contributory Pension Scheme (CPS) in Nigeria, formalised through the Pension Reform Act of 2004 and amended in 2014, was designed to guarantee retirement income security for public servants. Despite more than two decades of implementation, anecdotal and emerging empirical evidence suggests that fear of retirement (FoR) remains pervasive among federal civil servants. In this study, the variables of CPS participation were related to fear of retirement among Nigerian federal civil servants in relation to being aware of scheme provisions, perceived adequacy and contributions and trust on PFAs. It also identified gender and service cadre as the predictors of fear of retirement. This cross-sectional survey made of a sample of 351 federal civil servants selected from five ministries in Federal Capital Territory Abuja using adapted validated scales. Analyses included Pearson's correlation, multiple linear regression, independent samples t-test and one-way ANOVA. Results showed higher-than-average mFoR = 3.66 (on a scale from 1.00–5.00) and perceived adequacy (beta = −0.38) and PFA trust (beta = −0.28) were the most significant inverse predictors of retirement fear respectively. Fear was reported at a significantly higher level among females and junior-cadre officers. The results highlight the necessity for increased respective contribution rates, compulsory financial literacy initiatives and transparent PFA governance to alleviate retirement anxiety amongst Nigerian public servants.