International Journal of Applied Economics, Finance and Accounting
ISSN 2577-767X
Vol. 18, No. 1, pp. 1-14
2024
DOI: 10.33094/ijaefa.v18i1.1258
© 2024 by the authors; licensee Online Academic Press, USA
1
© 2024 by the authors; licensee Online Academic Press, USA
Exploring employees' perspectives on the Nigeria PRA 2014 and the impact of behavioural
factors on the choice of PFAs
Ishaku Ahmed Adamu
1*
Paluri Sheela
2
1,2
GITAM School of Business, GITAM
Deemed to be University,
Visakhapatnam Campus, Andhra
Pradesh, India.
Email: aishaku@gitam.in
1
Faculty of Social and Management
Sciences, Modibbo Adama University,
Yola, Nigeria.
Email: spaluri@gitam.edu
Licensed:
This work is licensed under a Creative
Commons Attribution 4.0 License.
Keywords:
Employees choice
Financial literacy
Pension
PFAs
Retirement planning
Risk tolerance.
JEL Classification:
D14; D15; D81; G23; G53.
Received: 10 July 2023
Revised: 8 September 2023
Accepted: 5 October 2023
Published: 21 November 2023
( * Corresponding Author)
Abstract
This study aimed to investigate the perspective of Nigeria North-
eastern federal tertiary institution employees on the Nigeria PRA
2014, as well as the behavioural factors that influence their selection
of Pension Fund Administrators (PFAs). The data was collected
from 307 respondents using a well-structured questionnaire. This
study incorporates various behavioural factors, including retirement
planning behaviour, risk tolerance, attitude towards the future, and
financial literacy, along with employees’ perspectives on the PRA
2014. This objective considered the influence of these factors on the
employee choice of PFAs. The findings reveal that employee
perspective on PRA 2014 and employee choice of PFA share a
significant relationship. Additionally, the results of the multiple
regression revealed that behavioural factors have a significant impact
on employees' selection of PFAs. The model that investigates the
effect of education qualification on the behavioural factors
influencing the employees’ choice of PFA reveals that educational
qualification does not significantly affect behavioural factors towards
employees' choice of PFAs. The employees' opinion on the PRA of
2014, as it relates to addressing issues with the pension scheme, and
the influence of behavioural factors have a notable impact on the
selection of Pension Fund Administrators (PFAs) by employees.
Funding: This study received no specific financial support.
Institutional Review Board Statement: The Ethical Committee of the GITAM Deemed to be University, India has granted approval for
this study on 28 October 2021 (Ref. No. 63602003/2021).
Transparency: The authors confirm that the manuscript is an honest, accurate, and transparent account of the study; that no vital
features of the study have been omitted; and that any discrepancies from the study as planned have been explained. This study followed all
ethical practices during writing.
Data Availability Statement: The corresponding author may provide study data upon reasonable request.
Competing Interests: The authors declare that they have no competing interests.
Authors’ Contributions: Designed the study, collected the data and performed the analysis, I.A.A.; reviewed, edited and supervised the
study, P.S. Both authors have read and agreed to the published version of the manuscript.
1. Introduction
The remuneration delivered by an organisation to its employees based on their employment status can be
defined as employee benefits (Stalmaseková, Genzorova, & Čorejova, 2017). The issue of employee benefits has
been receiving significant attention within many organizations. (Agubata, Okolo, & Ogwu, 2022). The
potential advantages encompass the provision of cashless perks or cash bonuses, which employees get in
addition to their regular earnings or compensation. The potential benefits encompass the provision of cashless
perks , or cash bonuses that employees get in addition to their regular wages or salary (Merhar, 2020). For an
employee, retirement benefits serve as insurance to poor financial conditions after retirement (Abdulkadir,
2020). A pension is a form of retirement benefit that is established by contractual agreement, wherein the
predetermined fixed sum is intended to be regularly distributed to a retiree as a result of their great service to
the organisation, where they worked as an employ (Eme, Uche, & Uche, 2014).