Influence of Retirement Benefits and Its Impact on Socio-Economic Development of Retirees in Tanzania

Social Science

The study analysis of retirement benefits on socio-economic development of retirees was meant to find out the benefits of the retirement of retirees in Nyamagana District; to find out the level of socio-economic development of retirees; to find out the relationship between the retirement benefits, policies/regulations and the level of socio-economic development of retirees in Nyamagana. A survey conducted to 86 respondents was done in Nyamagana District to address the study objectives. The study's key findings include retiree’s dependent too much on their small retirement benefits (pensions) for the rest of their lives after retirement from service; The old-age benefit, disability benefit, and health benefit are significant benefits during retirement. The monthly old-age pension and lump sum are the common benefits that are used by retirees for buying food, medicine for their health, paying education for their families, building houses, buying clothes and other basic requirements. Though, retirees face a lot of problems in their lives since the benefits they get or receive do not match with the change of cost of living due to inflation. The monthly old-age pension is given on the flat rate basis without indexation of benefits due to economic changes such that they do not match with the relevant standard of living that makes the majority of the retirees live poorly. Some retirees fail even to get their basic requirements in life and become burdens to family members after retirement. The majority of them become frustrated, fall sick and even die just after their retirement. However, more classical and quantitative studies should be done about retirement benefits for good living standards of retirees. This shows, the retirement benefits, socio-economic development, policies, and regulations were proved to be closely related.

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