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Factors Determining Financial Retirement Planning of Government Employees: Experience from Tanzania

Author

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  • Tiberius Phillip Mlowosa

  • Prof. Gwahula Raphael Kimamala (PhD)

  • Dr. Dionis Ndolage (PhD)

Abstract

Purpose: The study examined the factors affecting financial retirement planning of government employees in Tanzania. Methodology: The study employed a positivist paradigm, deductive approach, and cross-sectional survey design. The study collected quantitative data through questionnaire from government employees in Tanzania. Data from 408 employees across 24 ministries were analyzed descriptively using IBM SPSS 25, and inferentially using PLS-SEM (SmartPLS 3), which is chosen for its suitability with complex models. The hypothesized model of the study examined whether computation capability, financial knowledge, financial education, risk altitude towards financial products and financial decision behavior determines government employee’s retirement planning. Findings: Findings revealed that computation capability, risk attitude, and financial decision behavior had statistically significant positive effects on retirement planning, while financial knowledge and financial education were insignificant. Unique Contribution to Theory, Policy and Practice: Theoretically, it was established that variables of computation capability, risk attitude towards financial products and financial decision behavior collectively determine employees’ financial retirement planning preparedness which is grounded in the ideas of anticipated benefit and planned behavior. The practical implications emphasize the study's contribution to improving financial planning readiness among government employees in Tanzania. The policy consequence of this study is that governmental regulators such as SSRA, and pension scheme providers like NSSF and PSSSF, should include the identified criteria from this study in their policy evaluations to ensure reliable and efficient retirement planning.

Suggested Citation

  • Tiberius Phillip Mlowosa & Prof. Gwahula Raphael Kimamala (PhD) & Dr. Dionis Ndolage (PhD), 2025. "Factors Determining Financial Retirement Planning of Government Employees: Experience from Tanzania," International Journal of Finance, CARI Journals Limited, vol. 10(6), pages 67-92.
    • Handle: RePEc:bhx:ojtijf:v:10:y:2025:i:6:p:67-92:id:3077
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