Pension and livelihood sustainability of retired civil servants in Uganda. a case of Wakiso district.

Abstract

This study examined the relationship between pension systems and livelihood sustainability of retired civil servants in Uganda, focusing on Wakiso District. The study was guided by three specific objectives: to assess the effect of contribution rate on livelihood sustainability, to examine the effect of investment returns on livelihood sustainability, and to establish the effect of pension payment efficiency on livelihood sustainability among retired civil servants. A cross-sectional research design was adopted, using both quantitative and qualitative approaches. Data were collected using structured questionnaires and interview guides from a sample of 104 respondents. The quantitative data were analyzed using IBM SPSS Statistics Version 22, where descriptive statistics (means and standard deviations), correlation, and regression analysis were applied. Qualitative data were analyzed thematically to complement and explain the quantitative findings. The findings revealed that all the independent variables had a positive and statistically significant relationship with livelihood sustainability. Investment returns were found to have the strongest influence (B = 0.375, p = 0.000), followed by pension payment efficiency (B = 0.364, p = 0.000), and contribution rate (B = 0.204, p = 0.000). Correlation analysis further indicated very strong positive relationships between livelihood sustainability and investment returns (r = 0.954), pension payment efficiency (r = 0.950), and contribution rate (r = 0.916). The study also established that livelihood sustainability among retired civil servants in Wakiso District was generally moderate but insufficient, with many retirees facing challenges related to inadequate income, rising living costs, and limited financial stability. The study concluded that pension adequacy and livelihood sustainability are significantly influenced by contribution rate, investment returns, and pension payment efficiency, with investment returns emerging as the most influential factor. It recommended that government reviews contribution structures, strengthens pension fund investment strategies, enhances political commitment and policy implementation, and improves transparency and communication within the pension system. The study further recommended holistic pension reforms and suggested further research on inflation effects, digital pension systems, and comparative pension scheme performance in Uganda.