The Influence of Social Security Service Quality on the Socio-Economic Welfare of Retirees in Kinondoni District, Tanzania

Abstract

This study assessed the quality of social security services in improving the socio-economic welfare of retirees in Kinondoni District, Dar es Salaam, Tanzania. Guided by the Continuity Theory of Ageing and Institutional Theory, the study examined the adequacy of lump-sum payments, monthly pensions, and health insurance coverage. Adopting a convergent mixed-methods research design, the study utilised a sample of 364 retirees selected through simple random sampling and 30 key informants selected purposively. Data were collected using structured questionnaires and open-ended interviews, followed by descriptive statistical and thematic analyses. Quantitative findings revealed mixed perceptions of financial benefits. While 54.67% of respondents considered lump-sum payments satisfactory, 45.33% perceived them as inadequate, mainly due to high urban inflation. Furthermore, 55.50% of retirees expressed dissatisfaction with health insurance coverage, citing limited coverage for chronic conditions associated with ageing and high out-of-pocket expenses. Qualitative evidence triangulated these findings, highlighting that stagnant monthly pensions often necessitated reliance on informal family support. The study concluded that, while social security services provided a foundational safety net, the existing service quality was insufficient to ensure long-term socio-economic well-being and dignity in an inflationary environment. It was recommended that the Ministry of Labour, Youth, Employment and Persons with Disabilities, under the Prime Minister’s Office, in coordination with PSSSF and NSSF, implement automatic pension indexation and expand health insurance packages to include comprehensive geriatric care to align social security benefits with the rising cost of living in urban Tanzania.