International Journal of Sub-Saharan African Research (IJSSAR)

Background: Retirement marks a critical life transition during which individuals must make investment decisions that shape their long-term financial security and well-being. Although investment behaviour has been widely studied in developed economies, existing research has focused predominantly on financial products such as stocks, bonds, mutual funds, and pension funds, with comparatively little attention given to retirees' preferences between financial products and physical assets. Furthermore, most comparative studies have been conducted in developed and emerging financial markets, leaving limited empirical evidence from Sub-Saharan Africa, particularly Zanzibar, where ownership of land and other tangible assets is deeply embedded in socio-cultural and economic practices. Consequently, little is known about how retirees in Zanzibar choose between financial products and physical assets or the extent to which their investment preferences are influenced by the behavioural factors proposed by the Theory of Planned Behaviour. Objectives: The study assesses retirees' preferences for financial products and physical assets and examines gender-based differences in these investment preferences. Methods: A quantitative descriptive research design was adopted, involving 283 retirees from the Urban West Region of Zanzibar. Data were collected using a structured questionnaire administered across the Urban, West A, and West B districts, covering 33 Shehias (ward units within constituencies). The data were analysed using the Statistical Package for the Social Sciences (SPSS). Results: The findings reveal that retirees overwhelmingly prefer investing in physical assets, particularly land and residential housing, rather than financial products. Although investment patterns differ between male and female retirees, both groups demonstrate a stronger preference for land ownership than for financial investment instruments.
Conclusion: The study concludes that retirees in Zanzibar exhibit a stronger preference for physical assets than financial products, a pattern that differs from findings reported in many developed economies where financial assets dominate retirement investment portfolios. The findings further indicate that retirees' investment decisions are influenced by behavioural factors consistent with the propositions of the Theory of Planned Behaviour. Specific Contribution: The study contributes to the literature by providing comparative evidence on retirees' investment preferences for financial products and physical assets within the socio-economic context of Zanzibar. It extends the application of the Theory of Planned Behaviour to retirement investment decisions in a developing economy and offers context-specific evidence that contrasts with findings from developed financial markets.
Key Recommendation: Financial institutions should develop retirement investment products that align with retirees' behavioural preferences while improving awareness of the long-term benefits of diversified financial investments. Policymakers and pension authorities should formulate investment policies and retirement education programmes that integrate behavioural factors influencing retirees' investment decisions and encourage balanced investment portfolios.