MODERNIZING PENSION FUND CONTRIBUTION

Authors

  • Calvine Odiwuor
  • Dr. Were Joshua

DOI:

https://doi.org/10.47672/ajsas.844

Keywords:

Pension plans, mobile phone technology, entry age, annuities.

Abstract

Purpose: The purpose of this research is to develop a pension model which uses mobile phone technology to facilitate contribution towards the user’s pension scheme.

Methodology: The entry age pension funding method, and annuity present value & accumulations methods are used to come up with the contribution rate and the actuarial liability for the model.

Findings: The model developed is independent of salary or any other income and only takes into consideration those legally registered to use mobile phone. Being a private pension plan, and the fact that it involves the member directly via and individual mobile phone subscription, wider coverage is anticipated.

Unique contribution to theory, practice and policy: Contribution towards pension scheme by use of mobile phone technology in which contribution (which is fixed and independent of salary) is achieved by how frequently, the credit is loaded and used by the subscriber.

Author Biographies

Calvine Odiwuor

Assistant Lecturer, School of Mathematics, Statistics, and Actuarial Science, Tom Mboya University College, Kenya.

Dr. Were Joshua

Lecturer, School of Mathematics, Statistics, and Actuarial Science, Maseno University, Kenya.

References

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Metzger, C. (2017). Who is saving privately for retirement and how much? New evidence for Germany. International Review of Applied Economics, 31(6), 811-831.

Scott, W. F. (1999). Life assurance mathematics.

Weil, D. N. (1991). What determines savings?: A review essay. Journal of Monetary Economics, 28(1), 161-170.

Hussein, K., Mohieldin, M., & Rostom, A. (2017). Savings, financial de- velopment and economic growth in the Arab republic of Egypt revisited. The World Bank.

Andrew, D., George, J., & Sekei, L. H. (2018). Insights on the preferences and usage of financial services by savings groups in Tanzania. SatF Consortium.

Aker, J. C., & Mbiti, I. M. (2010). Mobile phones and economic develop ment in Africa. Journal of economic Perspectives, 24(3), 207-32.

Digital Savings Group pilot report April 2018

Actuarial Education Company Notes on Pension Funds.

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Published

2021-11-15

How to Cite

Odiwuor, C., & Were, J. (2021). MODERNIZING PENSION FUND CONTRIBUTION. American Journal of Statistics and Actuarial Sciences, 3(1), 1 - 6. https://doi.org/10.47672/ajsas.844

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Section

Articles