The Contribution Of Retirement Benefits On Economic Wellbeing Of Pensioners In Dodoma City, Tanzania

ABSTRACT

The major aim of this study was to assess the contribution of retirement benefits on the economic wellbeing of pensioners in Dodoma city, Tanzania. Specifically, the study addressed three objectives: (i) to assess the economic wellbeing of the pensioners, (ii) to determine the relationship between retirement benefits and economic wellbeing of pensioners, and (iii) to examine the effects of retirement benefits on the economic wellbeing of pensioners in Dodoma city. A cross sectional research design was adopted in this study since data were collected at one point in time in the study area. The study involved both qualitative and quantitative approaches in collecting data. Simple random and stratified sampling were used to select a sample of 136 pensioners and 12 key informants such as pension officers and group leaders from pensioners‟ groups. Questionnaire and interview were used as data collection methods. Data were analyzed by using content analysis for qualitative data and SPSS for quantitative data where descriptive statistics, multiple regression and binary logistic regression analysis were performed. The research findings revealed that, the economic wellbeing of pensioners was not good after retirement because almost all the variables such as assets, food and income generating activities brought good results only before retirement. Second, the study revealed that monthly pension amount, pre-retirement training and lump sum had significant level at p < 0.05 and positive relationship with economic wellbeing since they were found to have a positive significant correlation with food consumed. Therefore, good retirement benefits are associated with good economic wellbeing. The study also revealed that monthly pension, education level, salary level and pre-retirement training had significant contribution to economic wellbeing as p < 0.05 since they had significant effect on food consumed. On the other side lump sum, other source of income, pre-retirement training and monthly pension had significant effect with asset owned at p < 0.05. Also pre-retirement training had significant effect to income generating activities at p < 0.1. The study recommends to specific institutions and individuals such as the government that they should work on pension formula (Kikokotoo) in order to increase the monthly pension amount for the purpose of increasing the economic wellbeing of the pensioners because it was found to have positive impact to their economic wellbeing. Although pre-retirement training was found to have negative effect on income generating activities of the pensioners, the study proposes that pensioners access different entrepreneurship trainings provided by different institutions in order to increase their knowledge on how to use the small capital they have as a source of capital to them.