Unveiling the Future of Retirement: The Opportunities and Obstacles in Modernizing Pension Schemes Across Africa

Abstract

This systematic review offers a holistic understanding of the prospects, challenges, and best practices in modernizing pension schemes across Africa. With a rising aging population, pension schemes are vital for financial security, societal well-being, and poverty alleviation. The study addresses literature gaps by exploring economic implications, assessing elderly frailty, and investigating quality of life impacts. Following PRISMA guidelines and using the PICOS framework, multiple electronic databases were searched for papers published between February 2010 and April 2022, focusing on African pension schemes. Thirty-one studies met the eligibility criteria and were included in the analysis. Findings indicate that while pension schemes improve mental health, food security, and societal structures, they face challenges such as data scarcity, financial sustainability, social dynamics, and institutional barriers. Best practices include tailored interventions, financial flexibility, and healthcare integration. This paper uniquely synthesizes multiple disciplines, providing an integrated perspective and filling a significant literature gap. The study introduces models considering economic, psychological, and health-related variables, enhancing theoretical understanding. For practitioners, it offers adaptable best practices for regional and cultural contexts in Africa, including financial diversification, healthcare integration, and legal clarity. The societal impact extends to the elderly, their families, and communities, providing critical insights for policymakers to design effective, sustainable pension schemes to improve the quality of life for Africa’s aging population.