ANALYSIS OF RETIREMENT BENEFITS AND SOCIO-ECONOMIC DEVELOPMENT OF RETIREES IN TANZANIA

Abstract

Social security systems have been under challenges and that the labor organization systems are too expensive

harm to the process of socio economic development of employees. It is observed that retirement time kills more

than hard work period ever does. It has been a common burden to family members to take care of their retirees

since they are old enough to work. The small income the retirees get from their pensions are affected by the

change of cost of living due to cost of production, war, famine, drought among others that bring unexpected pre

vailing prices of goods and services. This study aimed to assess the retirement benefits, policies and regulations

in relation to socio-economic development of retirees in Meru District. A sample size of 164 respondents was

selected using simple random sampling and a structured questionnaire was administered to them for feedback

for the study. Findings show that retirees dependent on their retirement benefits (pensions) for the rest of their

lives after retirement from service. Policy and regulations are affecting significantly the factors for retirement

benefits by providing flat and common rate for retirement benefit that do not match with the change of cost of

living due to inflation that affect their socio-economic development. The study concludes that there is no rela

tionship between retirement benefits, policies/regulations and socio-economic development of retirees in Meru

District. They are responsible of many struggles in their life; education, housing, food and health with are not

easy for them after retirement and depending on it without any other source of income.