Consumption-Income Disparity During Retirement in Ghana
International Journal of Economy, Energy and Environment
Volume 1, Issue 1, August 2016, Pages: 8-15
Received: Jul. 14, 2016; Accepted: Jul. 27, 2016; Published: Aug. 30, 2016
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Mark Edem Kunawotor, Department of Finance, Zenith University College, Accra, Ghana
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The retirement stage in the life cycle is a difficult stage if not perhaps, the most difficult stage. This is because maintaining pre-retirement consumption level is the preserve of few, though required by all. In Ghana, the inadequacy of the Social Security and National Insurance Trust pension benefit for instance, in matching up with the consumption needs of pensioners and their dependants creates a consumption-pension income disparity. This paper investigates the extent of this disparity and the reasons for the disparity. Our results show that, average consumption exceeds average pension benefit by 41%. This means that on average, a pensioner requires an additional 41% of alternative sources of retirement income to supplement his/her pension benefit. The study identifies inadequacy of the pension benefit and certain socio-economic factors to be responsible for the consumption-income disparity.
Consumption, Retirement, Pension Benefit, Consumption-Income Disparity
To cite this article
Mark Edem Kunawotor, Consumption-Income Disparity During Retirement in Ghana, International Journal of Economy, Energy and Environment. Vol. 1, No. 1, 2016, pp. 8-15. doi: 10.11648/j.ijeee.20160101.12
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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