Factors Affecting the Retirement Decision of Teachers: Case of Valikamam Educational Zone in Jaffna District in Sri Lanka

Abstract

The aim of this study is to investigate the significant impact of personal factors, family related, income related and work-related factors in determining the retirement decisions among government school teachers in Valikamam educational zone, Jaffna district in Sri Lanka. Identifying the factors which determine the choice of retirement decision among teachers help the policymakers to design the necessary steps in future. The study was done on 160 teachers who were selected randomly from 05 schools in Valikamam during the period of 2020. Data was collected through structured questionnaire. The collected data were analyzed using frequency analysis, independent samples t – test and Probit model. Frequency analysis showed that, 64% of the teachers decided to retire early whereas 36% of them decided to retire at mandatory age. Results of independent samples t - test suggested that, average early retirement age was not differing across gender and civil status, but it is differed across rest of other variables related to the health status of the teachers, availability of income source, work attachment, facing dual role problems and influence of family health conditions in retirement decision. Results of Probit model revealed that among the personal factors, the teachers who have health problems and poor health conditions in their family are more likely to retire early than others, whereas the teachers who are not facing dual problems and who don’t have other income sources, they are more likely to choose mandatory retirement age than their counterparts. The teachers who have more attached with their job and less unpaid responsibilities are less likely to retire early than other teachers. The findings of the study will be useful to the government and policy makers in preparing a proper retirement planning and reforms on social security system as well as pension programmes for the teachers in future.