The Impact of Pension Contribution Adjustments on Retirees’ Welfare: A Case of Kilimanjaro Region

This study examines how pension contribution adjustments affect the welfare of retired civil servants in Tanzania’s Kilimanjaro Region, focusing on members of the Public Service Social Security Fund (PSSSF). Using a convergent mixed-methods design, we surveyed 171 targeted retirees (143 valid questionnaires; 83.6% response) and conducted five key-informant interviews (HR and PSSSF officers). Quantitative data (five-point Likert; SPSS) were modeled via multiple linear regression, revealing a moderate but significant overall fit (R = .531, R² = .282, adjusted R² = .234; F (9,133) = 5.809, p < .001; SEE ≈ 0.745). Welfare was positively associated with perceptions of increased benefits (B = 0.179, p = .024), better long-term financial planning (B = 0.235, p = .004), and higher overall satisfaction and well-being (B = 0.186, p = .048), alongside a significant reverse-worded financial-security item (B = 0.161, p = .020); other items (standard of living, poverty reduction, secure income, reliable payouts) were not independently significant once these pathways were controlled. The qualitative narratives corroborated the mechanism that longer, predictable contributions yield larger lump sums and higher pensions, enabling retirees to meet basic needs and sustain dignity. We conclude that recent reforms are promising yet unevenly implemented. We recommend maintaining fair, affordable, and regularly indexed contributions; modernizing administration to reduce payment delays; strengthening member planning tools and financial literacy; aligning flexible retirement ages with health and labor conditions; and instituting systematic monitoring measures that enhance benefit adequacy, planning certainty, and overall well-being for Tanzania’s retired civil servants.

Pension Contribution Rate, Welfare, Retired Civil Servants, Pension Benefits

1. Adegboye, K. A. (2021). Civil servants’ perception of the impact of contributory pension scheme in Nigeria: A case study of Osun State Romoke Margaret, ADEWUMI. [Google Scholar] [Crossref]

2. Adewumi, S. (2022). Life after retirement and struggle for pension in Osun state, Nigeria. [Google Scholar] [Crossref]

3. Ahmed, S. M., & Ndyali, L. L. (2018). Life improvement on retired civil servant in Tanzania: An analysis of social security policy in Tanzania. International Journal of New Technology and Research, 4(1), 263149. [Google Scholar] [Crossref]

4. Ahmed, S. M., & Wang, B. (2018). A review on retirement practices towards public employees in Zanzibar in Tanzania. American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS), 42(1), 231-241. [Google Scholar] [Crossref]

5. Amani, J. (2022). Perspectives of In-service and Retired Academics on Retirement Planning in Tanzania. The African Review, 1(aop), 1-25. [Google Scholar] [Crossref]

6. Ananta, A., Moeis, A. I. A., Widianto, H. T., Yulianto, H., & Arifin, E. N. (2021). Pension and active ageing: Lessons learned from civil servants in Indonesia. Social Sciences, 10(11), 436. [Google Scholar] [Crossref]

7. Andongwisye, J., Torbjörn, L., Singull, M., & Mushi, A. (2017). Projecting Tanzania pension fund system. African Journal of Applied Statistics, 4(1), 193-218. [Google Scholar] [Crossref]

8. Anyim, F. C., OLUSANYA, O. A., & OKERE, R. C. (2014). A critique of pension reform act, 2004 in Nigeria. Journal of Arts and Humanities, 3(7), 78-84. [Google Scholar] [Crossref]

9. Anzaku, E. D. I. (2021). Impact of New Pension Act 2014 on the Plight of Senior Citizens in Nasarawa–Nigeria. [Google Scholar] [Crossref]

10. Ashenafi, G. (2015). Aging and retirement among Ethiopian elderly: Adjustment, challenges and policy implications. Unpublished Dissertation). Addis Ababa University, Addis Ababa. http://etd. aau. edu. et/handle/123456789/11179. [Google Scholar] [Crossref]

11. Babbie, E. R. (2020). The practice of social research. Cengage Au. [Google Scholar] [Crossref]

12. Basiglio, S., & Oggero, N. (2020). The effects of pension information on individuals’ economic outcomes: A survey. Economies, 8(3), 67. [Google Scholar] [Crossref]

13. Bayarsaikhan, D., Tessier, L., & Ron, A. (2022). Universal Health Coverage and Social Health Protection: Policy relevance to health system financing reforms. International Social Security Review, 75(2), 75-95. [Google Scholar] [Crossref]

14. Bierbaum, M., & Schmitt, V. (2022). Investing more in universal social protection: Applying international social security standards in social protection policy and financing. ILO Working Paper. [Google Scholar] [Crossref]

15. Boden, R. (2021). Pensioned off? Evaluating the UK’s National Insurance scheme. Public Money & Management, 41(8), 646-655. [Google Scholar] [Crossref]

16. Bukwimba, M. L. (2022). The Influences of Education Level and Multiple Incomes on Extension of Life after Retirement among Tanzanians. East African Journal of Interdisciplinary Studies, 5(1), 108-125. [Google Scholar] [Crossref]

17. Carr, D., & Utz, R. L. (2020). Families in later life: A decade in review. Journal of Marriage and Family, 82(1), 346-363. [Google Scholar] [Crossref]

18. Chukwuma, A. B. (2018). The impact of new pension reform on the lives of Nigeria retirees. International Journal of New Technology and Research, 4(5), 263060. [Google Scholar] [Crossref]

19. Devereux, S. (2021). Social protection responses to COVID-19 in Africa. Global social policy, 21(3), 421-447. [Google Scholar] [Crossref]

20. Fapohunda, T. (2013). The pension system and retirement planning in Nigeria. Mediterranean Journal of Social Sciences, 4(2), 25-34. [Google Scholar] [Crossref]

21. Feldstein, M. (1974). Social security, induced retirement, and aggregate capital accumulation. Journal of political economy, 82(5), 905-926. [Google Scholar] [Crossref]

22. Feng, Z., Glinskaya, E., Chen, H., Gong, S., Qiu, Y., Xu, J., & Yip, W. (2020). Long-term care system for older adults in China: policy landscape, challenges, and future prospects. The Lancet, 396(10259), 1362-1372. [Google Scholar] [Crossref]

23. Ferdinand, E. O., & Ameh, A. (2021). Governance, Public Sector Pension Schemes and Retirement Planning: Lessons for Retirees. International Journal of Accounting and Public Sector Management, 1(1), 17-22. [Google Scholar] [Crossref]

24. Fulgence, S., & Tarimo, E. A. (2022). The Effect of Merging Pension Funds on Provision of Retirement Benefits in Tanzania: A Survey of Retirees in Dar es Salaam Region. Social Sciences, 11(2), 103-109. [Google Scholar] [Crossref]

25. Holzmann, R. (2012). Global pension systems and their reform: Worldwide drivers, trends, and challenges. [Google Scholar] [Crossref]

26. ILO. (2016). Making Decent Work a Reality in Tanzania. International Labor Organization. Retrieved 24 October from https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@africa/@ro-abidjan/@ilo-dar_es_salaam/documents/publication/wcms_541912.pdf [Google Scholar] [Crossref]

27. Isaka, I. C., & Ndanshau, M. O. (2020). Empirical Analysis of the Adequacy of the Pension System in Mainland Tanzania. Tanzanian Economic Review, 10(2), 23-47. [Google Scholar] [Crossref]

28. Jiboku, J. O., Adisa, I. B., & Jiboku, P. A. (2021). Pension administration and employees’ retirement anxieties in Nigeria. Studime Sociale, 15(4), 5-25. [Google Scholar] [Crossref]

29. John, T. M. (2025). Securing Political Accountability to Future Generations with Retrospective Accountability. [Google Scholar] [Crossref]

30. Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International. [Google Scholar] [Crossref]

31. Mchomvu, A. S., Tungaraza, F. S., & Maghimbi, S. (2002). Social security systems in Tanzania. Journal of Social Development in Africa, 17(2), 11-28. [Google Scholar] [Crossref]

32. Modigliani, F., & Brumberg, R. (1954). Utility analysis and the consumption function: An interpretation of cross-section data. Franco Modigliani, 1(1), 388-436. [Google Scholar] [Crossref]

33. Monare-Muchazviona, M. (2023). Women and retirement planning in Botswana. A framework for the future. European Academic Journal-I, 2(001). [Google Scholar] [Crossref]

34. Mthembu, Z. (2022). Retirement planning for financial independence: exploring different investment vehicles from a tax benefit perspective. [Google Scholar] [Crossref]

35. Muhanguzi, K. B. (2021). Pensions and timing of retirement: the case of the public service pension scheme in Uganda. Available at SSRN 3874784. [Google Scholar] [Crossref]

36. Mutale, B. (2023). The role of financial literacy on retirees: a case study of retirees under the public service pensions fund in Zambia The University of Zambia]. [Google Scholar] [Crossref]

37. Mutuku, D. (2023). Factors Influencing the Application of Balance Scorecard at National Social Security Fund University of Nairobi]. [Google Scholar] [Crossref]

38. Mwakisisile, A., & Larsson, T. (2021). Analysis of a reform option for the tanzanian pension system. Tanzania Journal of Science, 47(1), 354-365. [Google Scholar] [Crossref]

39. Mwakisisile, J. A., Larsson, T., Singull, M., & Mushi, A. (2017). Projecting Tanzania Pension Fund System. African Journal of Applied Statistics, 4(1), 193-218. [Google Scholar] [Crossref]

40. OECD. (2024). OECD Pensions Outlook 2024: Improving Asset-Backed Pensions for Better Retirement Outcomes and More Resilient Pension Systems. OECD Publishing. Retrieved 24 October from https://cri.georgetown.edu/wp-content/uploads/2024/12/OECD-Pensions-Outlook-2024.pdf [Google Scholar] [Crossref]

41. Ogula, P. A., Ogoti, E. O., & Maithya, P. M. (2009). Educational and Social Science Research Advanced Short Course. [Google Scholar] [Crossref]

42. Okolie, U. C., & Idibra, M. (2022). Delayed payment of gratuity, pension, and post-retirement conditions. Indonesian Journal of Social Sciences Volume, 14(02), 79-92. [Google Scholar] [Crossref]

43. Overton, L., & Smith, C. Q. (2022). Pension Decision-Making in the New Retirement Landscape. [Google Scholar] [Crossref]

44. Patton, M. Q. (2007). Sampling, qualitative (purposeful). The Blackwell encyclopedia of sociology. [Google Scholar] [Crossref]

45. Phillips, R., McNaught, C., & Kennedy, G. (2012). Evaluating e-learning: Guiding research and practice. Routledge. [Google Scholar] [Crossref]

46. Pilipiec, P., Groot, W., & Pavlova, M. (2021). The effect of an increase of the retirement age on the health, well-being, and labor force participation of older workers: a systematic literature review. Journal of Population Ageing, 14, 271-315. [Google Scholar] [Crossref]

47. Rubyagiza, E. (2020). Effect of inflation on adequacy of pension benefits in Rwanda University of Rwanda]. [Google Scholar] [Crossref]

48. Rwegoshora, H. (2015). The plight of social pension provision to older people in Tanzania. Huria: Journal of the Open University of Tanzania, 19(1), 105-118. [Google Scholar] [Crossref]

49. Samuelson, P. A. (1958). An exact consumption-loan model of interest with or without the social contrivance of money. Journal of political economy, 66(6), 467-482. [Google Scholar] [Crossref]

• Impact of Foreign Direct Investment in India
• Issues Involved in Digitalisation Special Reference to Indian Tourism Growth
• Relationship Marketing and Customer Loyalty in the Fast-Moving Consumer Goods (FMCG) Industry in Nairobi County
• Financial Literacy or Financial Inclusion? Which is Which, What is What—To Achieve Uganda’s 10-Fold Economic Growth By 2040
• Harnessing Natural Gas for Economic Transformation: Overcoming the Regulatory and Infrastructural Bottlenecks in Nigeria