Factors Militating Against Supplementary Pension Contribution In A Fast Aging Economy

The purpose of this study was to investigate the factors militating against supplementary pension contribution among employees of China Railway S.Group Company Limited.Simple random sampling technique was used.Structured questionnaire with close-ended questions were used to solicit data from 450 respondents.Structural Equation Modelling was employed in the analysis of the data.The results revealed that there is a majority of the participants never attended any educational and sensitization programs aimed at encouraging them to undertake supplementary pension.The results of study were in line with two management theories,such as the social capital theory,theory of life cycle in that incentives,positive savings lifestyle and periodic reward system were statistically significant and positively influenced supplementary pension contribution.It is highly recommended that government and policy makers should put in place incentives package such as subsidies and tax reliefs which will encourage employees to undertake supplementary pension schemes for retirement.Lastly,the companies should organize more education programs to sensitize its employees on the need to undertake supplementary pensions and upward adjustment of their salary packages in when due in order not to discourage employees from contributing towards supplementary since that is the surest way of securing a better life after retirement.