Doctoral thesis
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 self-administered 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 <.05. The study identified that, retirees were spending the retirement income mainly on investment and basic needs and any other amount thereafter directed to investment, was for the purpose of creating a sustainable flow of income for meeting the basic needs. In light of the key findings from specific objectives, the study revealed that, for the participated individuals from HEIs in Tanzania, there were no statistically significant differences with regard to age-based perceptions on planning tendencies as proclaimed by the life-cycle theory. Based on these findings, the study offered recommendations for interventions in policies at institutional levels as well as national level alongside further research on financial literacy and financial planning behavior, factors affecting workers financial planning over time, viability of investment options among retirees and sustainability of the retirement income among the retirees over their remaining life time.