Factors affecting premature withdraw of pension fund members on social security system in Tanzania: Case of Parastatal Pensions Fund

This work analyzed factors influencing early withdraw of pension members from social security system in Tanzania. The study was conducted at the Parastatal pension fund (PPF) headquarters in Ilala district Dar es Salaam region in Tanzania with the focus on board influence, organization investment, members’ profile and inflation on early withdraw of pension members. The population of the study comprised all members PPF pension fund. A sample size of 70 respondents was chosen randomly from PPF pension fund members. To test the reliability of this study, SPSS was used to run a reliability test on all the items on the questionnaires and Cronbach’s alpha was used to test the suitability of research instrument used in collecting data for the study. Regression analysis was as well used in analyzing the data collected from the sample using questionnaire to determine the magnitude of relationship on factors influencing early withdraw of pension fund members. The findings using regression revealed that, board size had a strong and significant relationship with early withdraw of pension fund members. From regression coefficient also indicated that, board size significantly predicted early withdraw of pension fund members. Regression coefficient indicated that, organization investment and members profile significantly predicted early withdraw of pension fund members. It also indicated that, inflation can predict the factors that can influence early withdraw of pension fund members. The study concludes that, board size, organization investment, members’ profile and inflation had significant influence on early withdraw of pension fund members. Therefore, to improve on retention of pension fund members, this research recommends that the government should facilitate and encourage members to be patient. It should be strict to the pension fund officers and managers so that they can perform their duties as they are required.