Optimizing Pension Participation in Kenya through Predictive Modeling: A Comparative Analysis of Tree-Based Machine Learning Algorithms and Logistic Regression Classifier

Pension plans play a vital role in the economy by impacting savings, consumption, and investment allocation. Despite declining mortality rates and increasing life expectancy, pension enrollment remains low, affecting the long-term financial stability and well-being of populations. To address this is...

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Vydáno v:Risks (Basel) Ročník 11; číslo 4; s. 77
Hlavní autoři: Kemboi Yego, Nelson, Kasozi, Juma, Nkurunziza, Joseph
Médium: Journal Article
Jazyk:angličtina
Vydáno: Basel MDPI AG 01.04.2023
Témata:
Algorithms
Consumption
Expenditures
Finance
Financial inclusion
Informal economy
Insurance coverage
Life expectancy
Long term health care
Machine learning
Methods
Mortality
Mothers
Older people
Participation
Patient outcomes
Pension plans
pension uptake
Pensions
Population
random forest classifier
Regression analysis
Retirement
tree-based models
Kenya
Africa
ISSN:2227-9091, 2227-9091
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Shrnutí:Pension plans play a vital role in the economy by impacting savings, consumption, and investment allocation. Despite declining mortality rates and increasing life expectancy, pension enrollment remains low, affecting the long-term financial stability and well-being of populations. To address this issue, this study was conducted to explore the potential of predictive modeling techniques in improving pension participation. The study utilized three tree-based machine learning algorithms and a logistic regression classifier to analyze data from a nationally representative 2019 Kenya FinAccess Household Survey. The results indicated that ensemble tree-based models, particularly the random forest model, were the most effective in predicting pension enrollment. The study identified the key factors that influenced enrollment, such as National Health Insurance Fund (NHIF) usage, monthly income, and bank usage. The findings suggest that collaboration among the NHIF, banks, and pension providers is necessary to increase pension uptake, along with increased financial education for citizens. The study provides valuable insight for promoting and optimizing pension participation.
Bibliografie:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
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ISSN:2227-9091
2227-9091
DOI:10.3390/risks11040077