Age-Based Perceptions On Retirement Income Spending Plans Versus Actual Spending Upon Retirement Among Individuals From Higher Education Institutions In Tanzania

ABSTRACT

This study explored age-based perceptions on retirement income spending plans

versus actual spending upon retirement among individuals from higher education

institutions in Tanzania. The study had four specific objectives; to determine the

perceived optimal age to start planning about retirement income spending among

individuals from HEIs in Tanzania; establish perceived variations of plans on

spending retirement income across age cohorts among individuals from HEIs in

Tanzania; examine actual prioritized expenditure areas upon retirement among

individuals from HEIs in Tanzania, and; investigate the variations between actual

prioritized expenditure areas with the perceived plans across the age cohorts among

individuals from HEIs in Tanzania. The study was guided by the lifecycle theory

which theorized human planning and spending pattern in relation to age. The study

was principally conducted in Dar es Salaam and Morogoro and used the mixed

approach to research which based on a concurrent combination of both quantitative

and qualitative approaches. The cross-sectional descriptive survey design was used in

order to meet the research objectives. The study involved 369 respondents out of

them were 341 workers, 17 retirees, 8 human resource managers/officers and 3

pension officers. Thus, the study developed, validated and hence employed selfadministered

questionnaire and interview guides in order to collect data regarding

participants’ perceptions on retirement income plans as well as actual spending.

Quantitative data were descriptively and inferentially analyzed by using one-way

ANOVA with Post-Hoc test. Qualitative data were thematically analyzed. The

findings showed that there was no specific age whereby the participated individuals

from HEIs perceived to be optimal for starting to plan about retirement income

spending. Rather, the circumstances and wealth accumulation during the working life

was perceived to have potential likelihood in determining the plans. There was no

statistically significant evidence to conclude perceived variation of plans on

retirement income spending across age cohorts among the participated individuals

from HEIs in Tanzania on basic needs (p = .692, η2 = .008), leisure (p = .042, η2 =

.068), investment (p = .482, η2 = .016.), familial matters (p = .020, η2 = .083) and

charity (p = .886, η2 = .003) following the multiple comparison post hoc tests for p