Financial Literacy and Retirement Preparedness among Public Primary School Teachers in Dodoma, Tanzania

Abstract

Financial literacy plays a crucial role in effective retirement planning and overall financial well-being. Despite its significance, many individuals, particularly those in developing economies, lack the necessary knowledge and skills to make informed decisions about complex financial matters. This study was conducted in Dodoma to explore the role of financial literacy in retirement preparedness among public primary school teachers. It employed a qualitative approach, using interviews and focus group discussions for data collection. A total of 35 teachers and 5 key informants participated in the research. The three main themes identified—financial decision-making, financial management, and access to financial services—suggest that seminars organised by financial institutions enhanced participants' understanding of budgeting, saving, and investment. However, most participants had not applied this knowledge effectively due to various challenges, including personal attitudes and economic circumstances. The study highlights a link between financial literacy and access to financial resources, as participants, particularly those with several years before retirement, increasingly used financial services.  The study recommends that financial literacy should also be introduced to young people to promote financially responsible behaviours and assist them in planning effectively for retirement.