Motives of the Voluntary Retirement’s Decision and Its Impacts on the Financial Balance and Quality of Life: Empirical Study in Kingdom of Bahrain

Abstract

The study aimed towards defining the motivations of the voluntary retirement’s decision by employees of governmental sector in the kingdom of Bahrain, the level of financial balance and quality of life, and the impact of this decision on the financial balance and quality of life, outlining that the indicative significance of the variances in the level of the voluntary retirement decision’s grounds refer to the demographic variables of employees. The study sample involved (384) employees. The research methodology applied in the study is descriptive analytical study. Findings revealed that the main reason/motive for the voluntary retirement was personal with an arithmetic, followed by health and psychological motives, then social motives while financial motivations were the least and the level of financial balance among the government sector’s employees identified with medium percentage. Results revealed a positive correlative and statistically significant relation between the causes of the voluntary retirement decision and the financial balance for the government employees and that the motives of voluntary retirement decision explain the percentage of (10.1%) of the variation in the financial balance of government sector employees. Social motivations appeared as the most influential dimensions of voluntary retirement decision on the financial balance. The financial motives were the most influential dimension of the voluntary retirement decision on the quality of life. In view with the conclusions, the study suggests improving the conditions of voluntary retirement employees of government sector in the kingdom of Bahrain for its positive impact on the quality of life, and hand more roles and responsibilities mainly to those with longer years of experience to run the work and involve them in the decision-making process to motivate them at work, and relaunching the voluntary retirement program again after ten years to encourage the governmental employees to have the opportunity to access the field of entrepreneurship and take part in economic growth. In addition to, benefit from employing new skills in the government sector to reduce unemployment.