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[Literature on individuals’ intentions to retire has mainly focused on financial factors, personal factors, and employees’ entrepreneurial intensity. Very little work has been done to explain the role of psychological factors like self-concept, work attachment, established work relationships, and older worker stereotypes on one’s intention to retire. This study focuses on establishing a better understanding of the psychological factors that influence an employee’s intentions to retire in Kenya. The study is grounded in the image theory which posits that retirement is typified as a new beginning; a full period of life where commitment to work is removed and an employee is able to prioritize non-working activities. Applying an explanatory research design, this study uses stratified sampling. The sample size is computed using Cochran’s formula. The sample is 384 employees with a response rate of 87.1%. Data was collected through questionnaires following a drop and pick approach after at least five days from the respondents. The study analyzes the data using descriptive statistics, the Pearson Moment correlation, a factor analysis using the extraction method, and a principal component analysis. The findings show that psychological factors affect an employee’s intentions to retire. The results also show that work attachment is a significant component of the psychological factors that influence intentions to retire. The study provides a way forward, implications of the various policies, and undertaking reforms in retirement decisions in Kenya and other developing nations.]
Published: May 28, 2020
Keywords: Psychological factors; Intention to retire; Employees; Kenya
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