1.0 Introduction
1.1 Background of the study
The work that one does gives status to the person. It gives a meaning to life and feelings contribution to general welfare. Work also permits a person to be active and to be constructive social interaction with others. In spite of the fact that works brings fulfillment. One must retire from active service as one cannot deny the fact that as workers grow older, they make into a social group that is separate from the younger workers. Increasing physical and metal limitation associated with advancing in age; make it difficult for such people to work safely and competently to maintain previous level of performance. At the stage of retirement, the workers output reaches diminishing return. It becomes necessary for the worker to stop working, if his employer wants to minimize loss although not everyone with generous pension. Retirement as defined by Donnelly [1992-326] as the changes in Job situation where by the individual gives up his job when diminishing return set in.
Eze [2001-13] explain retirement where the employer is dissatisfied by the job performance of the employee. The German chancellor, OHO UOU BISMACCLE in 1880'' started the concept of retirement age of sixty-five years. Insurance company began to use that retirement age planning retirement and annuity programmed through the retirement age way in countries and organization. Nigeria operates one of the generous pensions in the world. After ten years of services, could then retire and enjoy the rest of his active life. Implications of Nigeria pension scheme is that, the public service is seen as being move lucrative. Pension is defined as a kind of annuity for the retired public servants for life [in some cases also his dependents after his death]. Pension is paid in fixed monthly amount, often times, a certain percentage of the salary is paid. From the government point of view the pension is given in recognition of long monotonous services.
The pension system unless specially adopted to meet the hardship to the family of a white collar or blue collar workers, who die prematurely in service or on the verge of retirement or before enjoying the pensioners benefit for any appreciable period. Pension can be classified as contributory and non-contributory. When both the government and the employee contribute (not necessary equally) towards its payment. It is non-contributory, if the whole amount for its payment is funded by the government or the employer. There is no much of difference between the two financially speaking, if the pension scheme is non-contributory, the salaries will be proportionately lower and vice versa. Employee's contribution creates a sort of night for him to pension and he may claim a voice in the management scheme.
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