Strategies to reduce poverty among retirees: a case of retirees from the formal sector in Kisarawe district

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Date

2010

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Volume Title

Publisher

Sokoine University of Agriculture

Abstract

Retirement is the point at which an employee ceases to engage in paid work and qualify for a pension. In developing countries and particularly in Tanzania, this pension scheme has been observed to contribute little to daily life of retired employees. A study was conducted in Kisarawe district to identify strategies that are taken by retirees in the formal sector to generate extra income apart form pension benefits. The study identified income generating activities (IGAs) that were done by retirees, the amount that were being earned by those activities and factors that were influencing involvement in IGAs. A structured questionnaire with both closed and open ended questions was used to collect primary data from a sample of 100 respondents. Statistical Package for Social Science computer programme was used to analyse the data. The study findings show that strategies undertaken by retirees was to engage in various IGAs for example farming activities. The study revealed that majority of the retirees earned incomes of below 100 000 Tshs per month. Further more, the results found that, retirees engaged in more than one activity received higher incomes (P< 0.01) than the ones who were doing just one activity. Time spent in work training influenced positively the involvement in IGAs (P< 0.05). It is concluded that there are many activities that are done by retirees to reduce poverty but the problem is the low income they get from those activities. It was noted that low and unreliable sources of income after retirement were obstacles to IGAs success. Thus it is recommended that employers should be responsible for the preparation of employees before retirement, government should review and readjust its policy about retirement pension benefits and employees should strive to improve their education which will have impact on salary and hence pension benefits.

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Thesis

Keywords

Poverty reduction, Retirees, Kisarawe district

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