ASSESSMENT OF THE CONTRIBUTION OF RETIREMENT BENEFITS TO THE WELLBEING OF PENSIONERS: A CASE STUDY OF ILALA CITY, TANZANIA

Abstract

etirement benefits on thetir well-being of pensioners This study investigates the impact of rin Ilala, Tanzania, addressing a crucial gap in existing literature regarding the adequacy of reement systems in developing contexts. The research is grounded in the Life Course Perspective (LCP) theory, which examines how individual life experiences are shaped by socio-historical contexts over time. The primary objectives are to assess the level of well-being among pensioners post-retirement, evaluate the relationship between pension benefits and retirees’ well-being strategies, and investigate the specific impacts of various retirement benefits mechanisms on overall welfare. Utilizing a mixed-methods research design, the study combines quantitative surveys and qualitative interviews to gather comprehensive data from a stratified sample of 100 pensioners who retired between 2021 and 2023, along with key informants, including pension officers. The Cquantitative analysis employed statistical tools to quantify relationships between different variables, while thematic content analysis was used for qualitative data from interviews. Key findings reveal that 57% of respondents are aged 62 and above, with males constituting a significantly larger portion of the sample. The data indicate that while retirement benefits, particularly lump sum payments, contribute positively to pensioners' financial conditions, many retirees often mismanage their funds due to a lack of financial literacy. A significant correlation exists between lump sum payments and improved food security, while inadequate monthly pensions adversely affect overall well-being. Moreover, pre-retirement training appears to enhance retirees’ capacity to navigate financial decisions post-retirement. Recommendations imply an urgent need for mandatory pre-retirement training programs to equip retirees with vital financial management skills and timely disbursement of pension benefits to mitigate financial hardships. Additionally, implementing support systems for retirees, such as financial counseling services, may foster better decision-making regarding investments. In conclusion, while retirement benefits possess the potential for improving financial security and well-being among pensioners in Ilala, substantial enhancements in training and policy implementation are essential for achieving desired outcomes in retirees' quality of life. This study serves as a foundational reference for policymakers striving to reform and strengthen Tanzania’s retirement benefits framework in the face of a rapidly aging population.