International Journal of Sub-Saharan African Research (IJSSAR)

Background: Financial literacy (FL) is essential for effective financial planning and investment decision-making; however, its level remains relatively low globally, with considerable variation between developed and developing economies (Klapper & Lusardi, 2020). Low FL can limit individuals’ ability to plan and manage their financial resources effectively, with retirees among the groups particularly affected.
Objective: This study investigated the factors constraining the development of financial literacy among retirees in Zanzibar, Tanzania. Methods: The study employed a convergent mixed-method, cross-sectional survey design, using a single administered questionnaire for data collection. From a population of 7,773 retirees, a sample of 364 was selected, of whom 283 participated in the study. Participants were selected from the Urban West Region. The data were analysed using SPSS and interpreted descriptively through the lens of the Theory of Planned Behaviour (TPB). Results: The findings show that retirees’ financial literacy was constrained by advice from religious leaders, limited access to formal financial education, the cost of professional financial advisory services, language barriers, and age-related learning challenges.
Conclusion: Improving retirees’ financial literacy requires integrated interventions, including access to financial education programmes, affordable professional advisory services, enhanced digital literacy, and the involvement of cultural and religious leaders. Policymakers should collaborate with community and religious institutions to deliver accessible financial literacy programmes tailored to retirees.
Unique Contribution: The study contributes to empirical knowledge by examining factors influencing financial literacy among retirees in Zanzibar. It also contributes theoretically to the application of the Theory of Planned Behaviour by providing a behavioural perspective on retirees’ engagement with financial literacy and the factors that shape their financial decision-making.
Key Recommendation: The Zanzibar Government and relevant stakeholders should strengthen lifelong financial education and accessible financial advisory services to improve retirees’ financial literacy and retirement well-being.