Journal of Aging Studies 64 (2023) 101103

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Journal of Aging Studies

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Why do academics fail to plan for retirement? Employers' and

employees' views
Jaquiline Amani a, *, Baraka Luvanga a, Honorata Kihaga a, Thaudensia Ndeskoi b,
Leatitia Gabriel c
a
Department of Educational Psychology and Curriculum Studies, Mkwawa University College of Education, a Constituent College of the University of Dar es- Salaam, P.
O. Box 2513, Iringa, Tanzania
b
University of Dar es- Salaam, Department of Educational Foundations, Management and Lifelong Learning P.O.Box 35048, Dar es Salaam, Tanzania
c
Dar es Salaam University College of Education, Department of Educational Psychology and Curriculum Studies, P.O.Box 2329, Dar es Salaam, Tanzania

A R T I C L E I N F O A B S T R A C T

Keywords: Studies have shown that early and informed retirement planning lead to a successful retirement transition, and
Financial literacy adjustments. Despite this fact, it has been widely reported that most of employees inadequately plan for their
Culture retirement. Existing empirical evidence provides limited information on barriers which affect academics'
Saving behaviour
retirement planning in sub-Saharan Africa, particularly Tanzania. Informed by the Life Course Perspective
Low income
Retirement planning
Theory, the present study qualitatively explored the retirement planning barriers from perspectives of the aca­
Academics demics and their employers in four purposefully selected universities in Tanzania. The focused group discussions
Higher education (FGDs) and semi-structured interviews were employed to generate data from the participants. The thematic
approach guided data analysis and interpretations. The study revealed seven barriers which affect retirement
planning among academics in higher education. These include: Limited knowledge of retirement planning, lack
of investment management skills and experience, failure to prioritize expenditure, attitude towards retirement,
financial constraints due to extended family needs, retirement policies and legal reforms, and limited time to
supervise investments. Based on the findings, the study provides recommendations to address personal, cultural
and systemic barriers in order to support academics' successful transition to retirement.

Background Retirement-related social policies and systems tend to vary greatly

depending on culture, regulatory bodies of individual countries and
Over the past decade, the topic of retirement among academics has legal frameworks (Carrino, Glaser, & Avendano, 2020; Fan, Stebbins, &
received a great deal of attention globally. The literature focuses on two Kim, 2021).
major issues. First, becoming a retiree is a complex and dynamic process In Western countries for example, two major systems characterise
that requires pre-retirement planning for successful transition and retirement pension systems, namely the public social security or state
adjustment (Cahill, Galvin, & Pettigrew, 2022; Davies & Jenkins, 2013). pension system and private pension systems. The public social security
Second, in concert with population aging, the number of older aca­ system is managed and coordinated by public entities and operated
demics has been increasing rapidly (Baldwing, 2018; Cahill, Pettigrew, based on the pay-as-you-go (PAYG) principle (Hammond et al., 2015;
Robinson, & Galvin, 2019; Kaskie, 2017; Wang & Shi, 2014). With the OECD, 2016), while in the company-provided defined-benefit (DB), the
aging of the academic work force in Higher Education Institutions benefit is defined as a function of earnings, often final salary (Chung,
(HEIs), it is essential that academics' pre-retirement planning experi­ Richard, Emmerson, & Wakefield, 2008). The PAYG benefit is a pension
ences are clearly understood to offer multiple perspectives and con­ system where employees' current contributions are used to calculate the
ceptual understanding of the retirement trajectories and their final benefits upon retirement (Mwakisisile & Larsson, 2021). Literature
implications on post-retirement life. Various retirement social policies indicates further that many countries with public pension systems
have been developed both in economically developed and developing operating under the PAYG principle experience considerable financial
countries as a means to enhance social security in old age. crisis (Axelrad & Mahoney, 2017; Hinrichs, 2021; Mojisola, 2019;

* Corresponding author.
E-mail address: jaquiline.moshi@muce.ac.tz (J. Amani).

https://doi.org/10.1016/j.jaging.2023.101103
Received 30 December 2021; Received in revised form 9 January 2023; Accepted 13 January 2023
Available online 20 January 2023
0890-4065/© 2023 Elsevier Inc. All rights reserved.
J. Amani et al. Journal of Aging Studies 64 (2023) 101103

Mwakisisile & Larsson, 2021). As a result, in the last two decades, many retirees received more pension than what they contributed, causing
OECD, Asian and African countries have undergone a string of pension threats to members and solvency of the pension funds (Mwakisisile &
reforms in response to economic, demographic and social challenges Larsson, 2021). This new formula received massive criticism from
(Hinrichs, 2021). Some areas in which major reforms have been evident members, scholars, politicians and trade unions, and as a result, the
include reducing the benefit ratio, introducing multi-pillar pension government withheld their decision and promised to constitute a team
systems with supplemental occupational and individual pensions and of experts to review the old regulation and come up with proposals on
more emphasis on private pension schemes and extending the retire­ how to amicably improve pension services while ensuring economic
ment age (Axelrad & Mahoney, 2017; Hinrichs, 2021; OECD, 2016). stability and survival of the funds. The outcome of the dialogue resulted
However, in the 1990s, through the Age Discrimination in Employment in the amendment of Section 25A of the Social Security Benefit Schemes
Act, the mandatory retirement age was abolished among academics in Regulations, which introduced a new formula of 33% of the total con­
Universities and University Colleges in many OECD countries (Flynn, tributions, which came into effect from the 1st of July 2022 among
2010). This means that academics have freedom to continue working pensioners from the private and public sector. Although these pension
until a ripe old age (Stroebe, 2010). reforms ought to transform retirement benefits practices and improve
In Tanzania, retirement pension systems for public servants have also performance and sustainability of pension funds (Mwakisisile & Larsson,
experienced several reforms. Before 2018, there were five mandatory 2021), they have consequences on employees' retirement planning de­
defined benefit schemes, which were regulated by Social Security Reg­ cisions, transitions and adjustments. This suggests that more reforms are
ulatory Authority (SSRA) operating under the pay-as-you-go principle. expected to be realized in the future to reduce anger among pensioners
These funds included the Parastatal Pension Fund (PPF), Public Service and ensure smooth retirement transitions.
Pension Fund (PSPF), Local Authority Pension Fund (LAPF), Govern­ Previous studies of retirement transition experiences have reported
ment Employees Provident Fund (GEPF) and National Security Social diverse findings with regards to how academics fare in OECD Asian and
Fund (NSSF) (Haule, 2013; Mwakisisile & Larsson, 2021). These African countries. Those findings reveal that most academics continue to
schemes differ from one to another depending on membership, compe­ work beyond retirement age (see e.g., Cahill et al., 2019, 2022; Davi­
tition in attracting members, and benefit package (Haule, 2013). The dovitch & Eckhaus, 2020; Davies & Jenkins, 2013; Dorfman, 2009) to
employees have the liberty to choose the scheme they prefer and a flat maintain their professional identity and occupational roles (Cahill et al.,
rate of 50% pension formula of employees' total saving in lump sum was 2022; Miron, Branscombe, Ball, McFadden, & Haslam, 2022; Rowson &
paid upon retirement if an employee has met all the required conditions. Phillipson, 2020). Three major reasons account for this, namely the
The remaining amount was paid on a monthly basis spread over a period value of age and experience in academia (Danson & Gilmore, 2012) and
of 12 years. The mandatory retirement age for the public servants was a desire to enjoy intrinsic job satisfactions (Flynn, 2010). Other studies
60 years, while the voluntary retirement age was 55. When retired, the have reported that as they face retirement, academics are usually con­
academics had an opportunity to continue working at the university cerned about their health and wellbeing, retirement planning, impact of
under renewable contracts upon request until 70 years, which qualified retirement on their professional identity, maintaining connections with
them for a gratuity. academia, seeking new identities, including hobby-related and place-
In 2018, Tanzania repealed the Public Service Retirement Benefit Act anchored activities, role of universities on post-university life, and
of 1999, the LAPF Pensions Fund Act, the GEPF Retirement Benefits changing relationships through the retirement transition (Cahill et al.,
Fund Act and the PPF Pensions Fund Act (URT, 2018). The Public Ser­ 2019, 2022; Cahill, Galvin, & Pettigrew, 2021; Ejechi, 2012; Ellis et al.,
vice Social Security Fund Act (PSSSF) (2018) consolidated the social 2017; Miron et al., 2022). Furthermore, some studies have indicated that
security schemes by merging four public funds, PPF, PSPF, LAPF and academics with less research activities tend to opt for early retirement
GEPF, into one. This scheme guides the provision of the social security and are more likely to be experiencing health problems including stress
benefits for the employees in the public service. The Act has also pro­ and fatigue (Cahill., et al.,
vided seven of the nine benefits in the International Labour Organization 2018; 2021; Tizard & Owen, 2001), while other research indicates
(ILO) No. 102 of 1952, including the Retirement Benefit, Survivors' satisfactory quality of life of the retired academics who re-engaged in
Benefit, Invalidity Benefit, Maternity Benefit, Unemployment Benefit, their previous occupational roles (Ejechi, 2012). Senior academics with
Sickness Benefit, and Death Gratuity (URT, 2018). Some of the benefits strong research records, however, experienced dissatisfaction with
which were covered under the former funds are no longer available, mandatory retirement (Cahill et al., 2021). As such, for individuals who
namely the Educational Grant from LAPF and GEPF. Other changes have been in their academic role for decades, if not well planned,
brought by the PSSSF Act include the removal of withdrawal benefits retirement can be perceived to be a potential threat to their psycho­
whereby employees that were terminated or decided to leave their logical well-being, academic identities (Strage, 2018), relationships,
employment or had a change of employment had an option to either resources and social status (Chase, Eklund, & Pearson, 2003).
continue to transfer the contributions or make a request for payment of In terms of their attitudes towards retirement, a study by Davies and
the same and start afresh. With the new PSSSF Act, a compulsory age for Jenkins (2013) found four distinct groups with varied perceptions.
retirement university academics whose rank is a Lecturer is sixty years, These include clean breakers, who view retirement as a welcome release
while voluntary retirement age is fifty-five years (URT, 2018). For those from work, and opportunists and continuing scholars who use retire­
at or above the Senior Lecturer rank or medical specialists, retirement is ment to re-negotiate the relationship with employers. The reluctant
not compulsory until the age of sixty-five and the voluntary retirement group considered retirement as a loss of a valued source of identity,
age is sixty. The extension of retirement age aimed not only to address while the avoiders were still undecided about retirement plans. Based on
the shortage of professors, senior lecturers in universities and medical these findings, it is clear that academics' retirement transition pathways
specialists in hospitals but to cut down on the cost of re-hiring on are heterogeneous, and culturally and socially constructed. Also, from
contractual bases. As a result of extending the retirement age, a retired the above review, it was noted that the academic work-force aging is
academic who still wishes to re-engage with the university for profes­ relatively different from other occupational groups. While the nature of
sional undertakings can do that only under a part-time contract when the academic role is often open-ended with varied roles and competing
the need is justified within the department. demands (Wortman, Biernat, & Lang, 1991), these professionals take
Another significant reform brought under the new regulation was the many years to develop their careers, build their professional identity and
formula of 25% of the employees' total contributions upon retirement have a lifelong commitment to work (Danson & Gilmore, 2012). As such,
age. Under this pension payment formula, the remaining 75% would be Fishman (2018) succinctly noted that it is important to understand ac­
paid on a monthly basis spread over 13 years. The review of the Public ademics' potential retirement pathways and challenges to enable the
Service Retirement Benefit Act of 1999 was enforced by the fact that staff to navigate their own future retirement preparation.

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J. Amani et al. Journal of Aging Studies 64 (2023) 101103

Although the topic of academic retirement has received great was employed to explore the individual characteristics and social, cul­
attention over the past decade, there is little data on the challenges faced tural, economic, and contextual factors which affect retirement planning
by academics when planning for their retirement. Most of the reported of academics in the context of Tanzania.
studies have examined the experiences of retired academics (Cahill
et al., 2019, 2021, 2022; Davies & Jenkins, 2013; Dorfman, 2009, 1992; Methods
Ellis et al., 2017; Miron et al., 2022; Rowson & Phillipson, 2020). Fewer
studies have explored retirement planning among academics who are The study adopted a qualitative research approach to explore aca­
still working from the employers' and employees' perspectives (Makona, demics' and employers' views regarding the key barriers for effective
2020; Ming Lai, Ling Lai, & Lau, 2009). In this regard, identification of retirement planning in four universities. Four criteria guided the selec­
academics' retirement planning barriers is important at policy and in­ tion of universities, namely accreditation status, age, nature of owner­
dividual levels. Therefore, the present study was designed to explore the ship and geographical location. In this study, only accredited
challenges which hinder academics' retirement preparations and actions universities based on the guidelines issued by the Tanzania Commission
to be taken by employers and employees to support smooth for Universities (TCU) were selected. In terms of geographical location,
work-retirement transitions. We hope the findings raised in this article the selected universities represent three different country zones: the
will encourage individuals working in the academic world to reassess Southern Highlands Zone, the Lake Zone, and the Eastern Zone. In terms
their planning strategies towards achieving successful retirement. This of age and size, the selected universities represented two public and
will allow employers to re-examine how the existing institutional pol­ private universities, which were the oldest and largest, as well as the two
icies and legal frameworks support and or constrain the employees' relatively new and small private universities in the country.
retirement planning. From each university, researchers randomly selected one faculty/
school for inclusion in the study. A total of 26 academics from the
Theoretical framework School/Faculty of Education; School of Law; College of Social Sciences
and Humanities and Faculty of Business and Administration partici­
Informed by the Life Course Perspective Theory (Elder, 1995), this pated. In addition, 4 Directors of Human Resources and Administration
study aims to understand the dynamics of the retirement planning were purposefully selected to represent employers, making a total of 30
process over a life time and its associated challenges among academics. participants. Then, the researchers visited the staff offices and sought
Life course perspective considers retirement as a significant life transi­ their availability and willingness to participate in the study based on
tion (Martinčeková & Škrobáková, 2019; Van Solinge & Henkens, 2008) their convenience. Those who showed interest in participating were
and focuses on individual development over time within given socio- further contacted for focused group discussions (FGDs). The distribution
cultural and historical contexts (Van Solinge & Henkens, 2008). of members in the four groups ranged from 5 to 9 as follows: Seven (7)
Informed by this theory, individual characteristics and environmental were recruited from University A, nine (9) from University B, five (5)
factors shape personal development at all stages of a lifespan (Gettings & from University C and five (5) from University D. The participants were
Anderson, 2018). From a life course perspective, five key principles informed of the purpose of the study, their rights to withdraw if they
explain the retirement planning process in one's life cycle: (a) lifespan wished to do so, and confidentiality and anonymity. FGDs took between
development, (b) process, (c) urgency, (d) timing, and (e) interdepen­ 60 and 90 min and they were conducted in Kiswahili, then translated
dency of linked lives (Elder, 1992, 1995; Gettings & Anderson, 2018). into English. Data analysis was conducted through themes in which
Principles of lifespan development suggest that human development preparation and organization of the data coding, presentation and
and aging are lifelong processes in which human life changes occur in interpretation were the key processes (Braun & Clarke, 2006). The
biological, psychological and social spheres. In this regard, process de­ ethical approvals and permission to conduct this research were sought
notes mechanisms through which retirement constrains or supports from all relevant authorities prior to data collection. Data collection for
psychological well-being. Three key resources have been found to sup­ this study was done between September 2020 and January 2021. To
port the transition to retirement: (a) economic resources, (b) personal ensure and maintain the ethical principles of confidentiality and ano­
resources and (c) social–relational resources. Interdependency of linked nymity, the four research sites were labelled University A, B, C and D for
lives, on the other hand, assumes that human lives are interdependent analysis and report writing.
and embedded within and influenced by people. Therefore, the linked
lives principle emphasizes the relationship between individual lives and Findings
social structures. This entails how the individual's life is influenced by
the lives of significant others, such as spouses, friends and family This study presents barriers to academics' retirement planning.
members. As such, the developmental processes always take place in the Findings revealed seven (7) key barriers, namely limited knowledge
context of on-going social relations and interactions. In this way, the about retirement planning, lack of investment management skills and
principle of agency postulates that “individuals construct their own life experience, attitude towards retirement, financial constraints due to the
course through the actions they choose within the opportunities and extended family needs, retirement policy and legal changes, lack of
constraints of history and social circumstances” (Patricia & Anderson, priority in budgeting and expenditure, and the limited time to supervise
2018, p.226). This means that individuals are active agents in the con­ the started investments.
struction of their own lives; thus, any choice they make is based on the
available options they perceive. Available options are limited and/or Insufficient knowledge about retirement planning
shaped by individual factors (e.g., marital status, socio-economic status
and gender), historical conditions and family backgrounds. The princi­ The study found that academics fail to plan appropriately for their
ple of timing presents that people's actions, events and experiences have life after retirement due to limited knowledge of how to plan and the key
varying meanings depending upon the time they occurred. For example, issues to consider when planning. The FGD participants acknowledged
retirement planning might have differential implications to people that planning for retirement is crucial for a successful transition to
depending on when and why they retire (e.g., mandatory or voluntary). retirement but had mixed opinions on the activities involved in plan­
Generally, the life course principles underscore both life dynamics and ning. Both employers and academics shared the following views:
the social forces that shape retirement planning and its consequences. I think most people lack knowledge on what to do and how to go
The theory helps address the research problem because it articulates the about it. That's it!! They depend on their own whims, and in the final
multidisciplinary paradigm that considers structural, economic, social analysis, they reach retirement sometimes homeless (Academic, Uni­
and cultural barriers on one's retirement planning decisions. The theory versity A).

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J. Amani et al. Journal of Aging Studies 64 (2023) 101103

… You know the issue here is what characterises retirement plan­ save money for investments…ask me even now; life is very difficult.
ning. Does it mean saving money? Or owning a big company or in­ Salary has never been sufficient. But you cannot blame anyone
vestments? If you ask me, I assume that I have started preparing for because this culture has not been there since we were young (Academic,
retirement, but I have done none of these, we need first to be clear what University D).
is retirement planning (Academic, University C). Theoretically, the participants seemed to have interest and willing­
There is little know how regarding how to prepare for retirement. It ness to invest in income-generating activities. However, in practical
is like they are still in the dark… The academics are not ignorant of the terms, most of them have limited time and knowledge of how to suc­
benefits of getting prepared, they are rather ignorant of what to do and cessfully choose an investment project and excel in it. Two reasons seem
by what means (DHRA, University D). to explain this scenario, namely saving behaviour and lack of experience
When a follow-up question on the role of the employer towards with investments. Thus, ad hoc investment decisions have subsequent
retirement planning education was posed, the majority of participants implications to successful retirement planning.
reported having received no educational support from their employers
about retirement planning. Limited time to supervise investment projects
I have never received any training or even a seminar on issues related
to preparation for retirement (Academic, University A). Evidence from this study has shown that besides lacking knowledge
I have once seen officers from one of the social security funds when I of investment and financial management, even those who establish in­
reported for my first appointment here, and they were much concerned vestment projects have inadequate supervision during the process.
about membership and associated benefits, less was said about retire­ Participants also expressed that due to the nature of work in public
ment planning, of course by then, we were just thinking it was too early service, employees do not have sufficient time for supervising in­
to even hear issues on retirement (Academic, University C). vestments. They spend most of their time in their workplaces; as a result,
The director of human resources and administration corroborated they do not have ample time to monitor their financial portfolios.
this view: Time is an obvious barrier, after office hours, one goes home to
We once invited people responsible for social security funds to give handle pending family responsibilities. In this way, there is almost no
employees the necessary education, but they spent most of the time time left to chase after whatever small project which was started to take
talking about contributions and very little on education related to in­ care of the future (DHRA, University A).
vestment, saving, prioritising projects, and how to live a healthy life. Where does one get the time? One may have excellent ideas, but
This is an area that we need to put more efforts and resources to build many projects fail because academics do not have the time for super­
capacity of our staff (DHRA, University D). vision. Even if you employ people to assist, many of them are not
These findings imply that academics' retirement planning is affected trustworthy (Academic, University B).
by inadequate pre-retirement education. What to plan and how to do so
were key questions that emerged out of the discussion. As such, the Lack of priority in budgeting and expenditure
academics reported mixed opinions on key issues to consider when
thinking about retirement planning. Low retirement knowledge is While lack of retirement planning and investment knowledge were
attributed to employers' failure to provide appropriate and timely pointed out by participants as determinants of poor retirement planning,
retirement education for the employees. This situation impairs aca­ other participants opined that failure to prioritize budgeting and ex­
demics' knowledge about retirement planning, hence leading to poor penditures also affected employees' saving culture. This situation
retirement adjustment. eventually led to poor retirement planning. The participants added that
some academics spend more than what they earn, some fail to spend in
Lack of investment management skills and experience line with their plans, while others fail to prioritize budgeting and ex­
penditures due to unrealistic lifestyles. This ultimately increased lia­
Lack of investment management skills was mentioned as one of the bilities while limiting one's ability to invest in promising income-
factors that affects the academics' preparations for retirement. The generating activities:
participants were of the opinion that most academics fail to identify We do not have financial discipline; as such, life gets uncontrollable.
proper investments due to lack of investment skills and experience. They When one is recognised as an academic, he/she starts living over and
fail to select, plan and manage income generating projects, and as a above his/her means and starts imitating friends. For example, when I
result, they end up experiencing financial losses and getting frustrated. meet more affluent friends at work, I forget my poor family background
One of the academics had the following to say: and I start living a life of imitation. I engage in a luxurious lifestyle and
… people are ignorant of what projects they might start and the as a result, I fail to meet my retirement planning targets (Academic,
associated risks. They have interest to engage in investments, but the University A).
problem is that they do not check on their potentials when they start a In the same vein, one of the employers commented:
project; they plunge into whatever business they could think of, and Lifestyle is also another contributing factor. When young people get
eventually get stuck. In fact, the education about investment is largely employed for the first time, they take good time and unnecessarily spend
lacking (Academic, University C). a lot of money enjoying because they think they still have time. Many
Adding to how lack of project management experience affected young people get disoriented as they mimic groups of fellow young men
retirement investments, one participant expressed the following: and women, leading a life which is not of their level (DHRA, University
I know of a retiree who went into agriculture but ended up getting B).
losses for three consecutive years. This person is a graduate in agricul­
tural science, but what failed him is experience, nothing else. Eventu­ Attitude towards retirement
ally, he had to abandon the farm which is now a bushland. He later
ventured into keeping cows. This shows that he had not properly plan­ The study found that employee attitudes towards retirement also
ned what he wanted to do (Academic, University B). account for the failure to plan for retirement early in life. Participants
Saving behaviour was also felt to account for the employees' failure expressed that retirement seems like a very far off event when one is first
to invest in their future. The participants expressed saving as one of the starting employment. As such, they felt that they had plenty of time for
important elements of financial literacy, which largely affects one's planning. They added that in public service, employees tend to relax as
financial decision-making among academics: they expect to receive monthly pension upon retirement, different from
It is hard to believe, but the truth is that very few of us manage to the private sector employees. This kind of attitude holds them back

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J. Amani et al. Journal of Aging Studies 64 (2023) 101103

when it comes to early preparation for retirement, for example: Financial constraints due to the extended family support
I don't think money is the problem for academics, these people forget
themselves. Let me give you a small example. In our case, as far as The findings disclosed that due to African tradition and culture, in­
getting housing policy is concerned, the academics are more favoured dividuals tend to extend financial support to their relatives. This means
than administrative and supportive staff, which makes them forget participants spend most of their income on extended family matters. A
themselves, only to wake up from the slumber just five years before large number of dependants pose financial challenges when it comes to
retirement. For the rest of us who are in the administration, we know saving and timely investment for retirement. The following expressions
right from the start that we do not get such favour, and that paying corroborate:
yearly house rent is very expensive compared to academics who pay on Following our culture, we live a communal life, and to assist
monthly basis. Those who have had the chance of leaving this type of life nephews, cousins and friends is a normal practice; we are unselfish.
start preparing for retirement very early when it comes to housing Obviously, the salary will not be enough to do all these and yet have
arrangement (DHRA, University A). some reserve for retirement. You will find yourself oscillating around the
Consistent with retirement planning trends across fields, other par­ same point; you cannot make any significant progress (Academic, Uni­
ticipants expressed that employees tend to develop an illusion that they versity 4).
still have plenty of time before they retire and so they relax without In addition, in our African communities, when you become a public
getting worried about it: employee, you are expected to be the saviour and provider of the family.
Many new employees think retirement is something very far into the This dependency goes as far as assisting grandchildren, regardless of
future, and so they have enough time to prepare for this eventuality. In how much you earn. If you don't do this, people will not understand you.
actual fact, as soon as one gets employed, and sometimes even before This tendency has been responsible for holding back personal develop­
one gets employed, one is already handling a lot of responsibilities. So as ment plans, and by the time you become 50 years old, there are still a lot
days pass, resources also get scarcer (Academic, University B). of dependants…. even after you retire, they still come because they
They also reported that some employees believe that the pension know you have your pension (laughter)…you see, it's a circle of its kind
money is sufficient to cover their needs at retirement: (laughter) (Academic, University 1).
Experience has shown that many academics have very poor prepa­ However, employers had different opinions regarding financial
ration for retirement because they believe that after retirement, they are limitations as a factor which led to poor retirement planning among
going to be paid sufficient pension money which they can then use for academics. They argued that planning and expenditures have to match
investment. After getting the pension, one discovers that the money is ones' income level. They added that with proper financial planning and
not enough to do anything substantial, thereafter one gets frustrations expenditure, individuals can save and invest appropriately, for example:
and dies (Academic, University A). There are those who claim that money is not enough; I don't agree
When the participants were asked what factors determine academics' with this view. We have office attendants here who own good houses,
perceptions and attitudes towards retirement, they noted traditions and with their meagre salaries, while we have some professors who do not
culture as among the possible reasons. They added that retirement have houses. When they retire, it is not easy to evacuate them from
planning is not part of the African culture, and this makes most of the university housing. For me, this is not a question of income, it is a
employees less worried about early planning for their retirement, such question of financial discipline (DHRA, University A).
as:
I believe, taking the level of awareness we have here, it is not like we Retirement policies and legal reforms
do not know what to do. Let me say, perhaps, it is something we are not
used to doing – this is how we have been brought up. (DHRA, University The participants felt that changes in policies and acts on retirement
B). benefits had - to a large extent - affected both employees' retirement
Similarly, another participant commented: planning and decisions on when to retire. They cited the review of the
First of all, it is not our culture… It's only when you are just about to Public Service Recruitment Benefit Act (1999) as an example, as the new
retire then you start like hey!! hey!! hey!!…what I am going to do? We PSSSF Act proposed the new formula for calculating pension for retirees.
are also experiencing this problem in our offices, where someone is even With the new Act, the employee will receive a lump sum of 25% of his/
thinking of working for years more after retirement. This is not good; it her total contributions. They reported that this decision caused many
shows that he/she is unsure of what is he going to do out of the uni­ challenges for employees on their retirement benefits. In addition, the
versity. We also don't have that culture of training our people, to get new Act brought structural changes in terms of retirement age for senior
prepared for what the future would offer and how they should get pre­ academics from 60 to 65 years old as for the compulsory retirement. The
pared; this has to be a policy issue for all employers to comply… (DHRA, participants added that these systemic and legal changes made some
University C). employees opt for voluntary retirement, while others failed to properly
Another participant further opined that culture shapes individuals' plan due to the unexpected withdrawal of some benefits from their social
decisions to plan for the future due to the beliefs held or support from security funds. Two participants had the following experiences to share:
children, family members and the significant others: There is an issue here, which somehow seems external to an
… for African culture, for example, an old villager invests in a wife, employee, and it is a result of governance and retirement policy reviews.
can be even more than one, a lot of children, livestock, farms, etc. There are policy decisions which impact plans by retirees, and I am not
Because of our culture, we believe that at old age, our children will take sure about how it can be dealt with. For example, the proposed new
good care of us and our clans will also assist. This lifestyle is affecting us formula for calculating pension will affect the net take home. So, while
a lot, and a result, we are not very serious when we consider our an employee is engaged in his/her own plans, the government on the
retirement. (Academic, University B). other hand is also having its own plans… (Academic, University B).
The above excerpts indicate that attitude is a major determinant of You know the political landscape is changing, and this is another
individual behaviour (here decision to plan for retirement). Beliefs that problem. For example, in the past before this new Public Service Act, one
planning for retirement is not the norm in their culture and was too far could take money from ones' pension prematurely (called withdrawal
away to think about had a significant impact on their saving behaviour benefit), but now one cannot. You can now see how such reforms affect
and timing for starting retirement planning. people's retirement planning? One can no longer get money to invest in a
project, and it is also impossible to invest using money from one's salary.
You ask yourself why they should keep your money all this time, and
only release it when you are too old to do anything. These things might

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seem trivial but they are really puzzling (Academic, University D). economic growth (Hinrichs, 2021; Robertson-Rose, 2018). Arguably,
Based on the participants' views, the interpretation of these findings this proactive approach to saving behaviour reduces the risk of poor
requires one caveat. Although the academics think it is worth planning retirement transition and adjustment in old age, hence increasing indi­
for their retirement, their planning decisions are partly determined by vidual financial preparedness.
how favourable or unfavourable the existing retirement policies and The present study findings revealed further that investment in­
legal framework on the public service retirement benefits are. This tentions and failures are largely affected by high life costs, which are
means that any perceived negative changes on laws or policies regarding partly explained by extended family needs, attitudes towards retire­
employees' retirement benefits suggest a negative impact their em­ ment, changes in policy and legal frameworks on pension schemes,
ployees' retirement planning and post-retirement adjustment. failure to prioritize expenditure and type of investment and limited time
to supervise their investments. These barriers are multifaceted and
Discussion intertwined. For example, inadequate finances among the employees
may cause other life challenges, like health problems that may be
This study aimed to explore the potential barriers for effective attributed to incapacity to afford standard medical care. In the same
retirement planning among academics in Tanzania. Understanding the vein, the reforms in public pension policies and regulations may affect
key barriers that impede academics' efforts to make successful retire­ individuals' retirement plans and adjustment, as they have implications
ment plans was considered helpful for both individual employees' and to mandatory retirement age, post-retirement contractual engagement
policy makers' actions. Findings of this study showed limited knowledge with the university for those who wish to continue working and sudden
of retirement planning as one of the barriers towards successful transi­ change of final pension lump sum payment, which is affected by a
tion from work to retirement. Low awareness about retirement planning proposed new formula. Although the new regulation changed the
affected the academics' intentions to plan for retirement. Inadequate pension formula from 25% to 33% with effect from July 1st, 2022, it will
knowledge of what comprises retirement planning and how to plan are have both a positive and negative impact, which might bring more un­
also reported to affect employees' post- retirement life satisfaction and certainties to employees' retirement fate. Financial instability was
wellbeing (Hershey & Henkens, 2013). It was evident from this study mentioned by the participants as another challenge affecting many Af­
that participants had mixed feelings as to what constitutes retirement rican academics' plans for retirement. This was confirmed by the ma­
planning, whether the goal of planning goes beyond achieving financial jority of the participants who were of the opinion that cultural factors
stability or not, and how to effectively plan for retirement. Indeed, based play a major role in perceived obligations to nuclear and extended
on the findings, employees' successful retirement planning starts with family that adversely affect academics' financial management.
his or her attitude towards retirement and the rationale for doing so These findings reinforce claims that individuals' retirement transi­
from their lived experiences. This is in line with life course perspectives, tion experiences are not only affected by their own attitudes but by role
which consider the rationale and principle of timing in determining expectations and those of family members and or dependants (Blieszner
perceptions towards retirement and actions such as when to start plan­ & Bedford, 1996). The effects of socio-cultural dynamics on retirement
ning for retirement and reasons why they think is important to do so. planning emerged from our study are comparable to those found in other
Along with limited retirement planning knowledge, the study also African countries. For example, a study by Ejechi (2012) in Nigeria
revealed that most of the academics had low awareness of financial and revealed that although modernisation has increased individualisation,
investment management skills. Literature has shown that financial lit­ retirement planning is still perceived as a problem in many African
eracy is key to retirement planning attitude and saving behaviour countries due to extended families as the children are expected to take
(Hauff, Carlander, Gärling, & Nicolini, 2020; Kumar, Shukla, & Shurma, care of their aged parents and relatives. In South Africa, according to
2019). Financial planning involves planning, saving and investment Bertrand, Mullainathan, and Miller (2003), large extended families often
management for better financial outcomes (Lusardi, 2019). It is reported live together, help each other, and share resources. Unlike in the
that individuals who are more financially knowledgeable are more likely Western and Eastern countries, older adults are taken care of within the
to save and plan for retirement than their counterparts (Van Rooij, extended family cycle (Ejechi, 2012), as situation which has been taken
Lusardi, & Alessie, 2011). Large household surveys on financial literacy at the cost of quality of life for many public service retirees, including
reported persistence of the problem of financial planning not only in retired university academic staff (Eboiyehi, 2006). The findings resonate
developing economies but also developed countries (Niu, Zhou, & Gan, with the principle of interdependency of the linked lives under a life
2020). For example, in some countries like Ireland, New Zealand, the course perspective theory, which views human lives as interdependent
United States, China and the Netherlands, individuals lack basic finan­ and embedded with people and influenced by them. As such, human
cial and investment knowledge and hence prepare inadequately for beings are not living in isolation. There is a close relationship between
retirement (Lusardi & Mitchell, 2011; Niu et al., 2020; Van Rooij, individual's lives and their social structures within it, which is likely to
Lusardi, & Alessie, 2011). However, empirical evidence shows that shape individual's retirement planning behaviour.
different reforms have been adopted by the respective governments to Inadequate supervision time and lack of priority on investment
enable employees to achieve retirement wellbeing (Fan et al., 2021; planning may lead to premature investment plans and capital loss
Robertson-Rose, 2018). which, in turn affect retirement planning. Academics reported not
In Western and Eastern countries, ideologies on saving for retirement having time to supervise and monitor their investments. The partici­
differ. Studies show for example, in the United Kingdom, China and U.S. pants expressed that due to the nature of work in universities academics
A there is a nationwide policy on retirement planning participation and do not get sufficient time to adequately supervise their projects. Par­
saving for employees as a move towards a shift in responsibilities from ticipants also felt that it was challenging to balance their private lives,
the state and employer towards the individual worker (Fan et al., 2021; resting time and meeting the expectations of their future retirement
Flyn & Schroder, 2018). In the last decade, for example, two major re­ targets.
forms were evident both in OECD and Asian countries. The first one While these remain a fact, according to the principles of life course
involved countries which have shifted from pay-as-you-go (PAYG) sys­ theory, people plan for retirement within the opportunities and con­
tems to fully funded defined contributions. The second group are straints of their life history and the current social circumstances. Any
countries such as Sweden, Italy, Poland and England, which shifted from choice they make is from the options they perceive available to them.
PAYG to individualised defined contributions (Hinrichs, 2021; Mwaki­ This implies that, within their busy work schedule, the employees can
sisile & Larsson, 2021). Three main reasons are cited to have accounted plan manageable and realistic retirement actions and implement them
for these pension policy reforms, namely demographic aging, financial with the available resources.
market crisis, unemployment, unfavourable tax treatment and slow Additionally, based on the findings, the attitude held by the

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