28 percent of Tanzanian adults ‘have no retirement strategy
There is a need for multi-faceted approaches and collaboration among stakeholders due to the lack of retirement plans among more than a quarter of adults aged 55 and below in Tanzania, according to analysts.
This came to light after official data revealed that 28 percent of Tanzanian adults aged 55 and below have no retirement plans.
Data from the FinScope Tanzania 2023 Survey also shows that eight percent of people expect their children to take care of them and two percent depend on money from friends and or relatives.
The survey involved all adults (those aged 16 years or older) living in Tanzania, currently estimated to be 34.1 million or 55 percent of Tanzania’s total population of 61.7 million, according to the 2022 National Population and Housing Census.
However, according to the survey data, there is an increase in Tanzanian adults planning to rely on agriculture (farming and livestock) in the past five years from 19 percent in 2017 to 23 percent in 2023.
The number of people who plan to depend on their own businesses rose from 9 percent in 2017 to 15 percent in 2023.
Finscope data also shows that by 2023, regardless of the fact that nearly 30 percent of the Tanzanians are aware of the investment options in pension funds but uptake is recorded at only four percent.
Moreover, only two percent of adults aged 55 years and below have considered pension funds as their retirement plans.
“Pension fund uptake remains strongly linked to employment,” the report reads in part.