DAR ES SALAAM: For many Tanzanians, retirement planning has traditionally been associated mainly with formal employment and mandatory pension contributions. However, changing economic realities, rising living costs and the need for greater financial independence are creating demand for broader investment solutions that allow individuals to prepare for life after active employment.
Responding to this need, Foresight Private Retirement Fund (FPRF), a newly established private retirement investment fund, is introducing a new approach to retirement planning by encouraging Tanzanians from all sectors of society to embrace voluntary, secure and professionally managed long-term investments.
Here, the Fund has launched a nationwide financial literacy campaign aimed at increasing public awareness about the importance of starting retirement planning early and building sustainable wealth over time. Through this initiative, FPRF seeks to transform attitudes towards retirement savings and encourage individuals to view financial preparation for old age as a lifelong responsibility rather than a decision made only at the end of one’s working career.
Speaking to journalists in Dar es Salaam, Chief Executive Officer of CORE Securities Limited, the company managing FPRF, George Fumbuka, said the campaign represents the next stage following the official launch of the Fund.
He explained that FPRF was established to provide Tanzanians with an opportunity to create long-term financial security, reduce dependence on others during retirement and improve the future well-being of individuals and their families.
“We want to foster a new financial culture in Tanzania. For many years, people have viewed retirement planning as something to consider only when they are approaching retirement. We believe planning should begin much earlier. The important question is not whether you will retire, but how you will live after retirement,” he said.
Mr Fumbuka emphasized that early investment allows individuals to benefit from long-term wealth accumulation, where small but consistent contributions can grow significantly over time. He noted that delaying retirement planning can make it more difficult for individuals to achieve financial independence later in life.
According to him, one of the major challenges facing Tanzania’s retirement landscape has been limited access to structured long-term investment opportunities for people outside formal employment.
For decades, pension arrangements have largely benefited employees in the public and private sectors, leaving many Tanzanians working in informal sectors without adequate mechanisms to build retirement savings. This includes entrepreneurs, farmers, traders, small business owners, fishermen, and other self-employed individuals.
FPRF aims to address this gap by creating an inclusive investment platform open to all Tanzanians regardless of their occupation or income source.
The Fund welcomes participation from public and private sector employees, entrepreneurs, farmers, traders, cooperatives, savings and credit cooperative societies (SACCOs), companies, institutions and organized community groups.
Mr Fumbuka said the financial literacy campaign will play a critical role in helping Tanzanians understand retirement investment, wealth creation and responsible financial management.
The campaign will involve workshops, seminars, stakeholder forums and public engagement activities designed to provide practical knowledge on retirement planning, available investment options and strategies for building financial stability.
“The success of FPRF will not be measured only by the number of members we register, but by the level of financial awareness we create among Tanzanians. Financial education is the foundation of our strategy. We want to reach people in their communities and provide them with the knowledge required to make informed financial decisions,” he said.
He clarified that FPRF is not designed to replace existing social security schemes but rather to complement them by providing an additional voluntary investment option for individuals seeking to strengthen their retirement income.
Unlike traditional pension arrangements that mainly depend on mandatory contributions, FPRF operates on voluntary participation, allowing members greater flexibility in determining how much they invest according to their financial abilities and personal goals.
Another important feature of the Fund is the flexibility provided to members when accessing their retirement benefits after meeting eligibility requirements.
Mr Fumbuka explained that members may choose to receive their retirement benefits through a lump-sum payment, regular monthly pension income, or a combination of both options depending on their individual circumstances.
He added that investors can begin with contributions they can comfortably afford and increase their investment levels gradually as their income and financial conditions improve.
Speaking during the same briefing, FPRF Fund Manager Richard Matekele explained that the Fund has developed three investment portfolios designed to meet the different needs of investors at various stages of life.
The first is the Youngsters’ Plan, targeting investors below the age of 35. This portfolio focuses on long-term capital growth by allowing younger investors more time to benefit from investment opportunities.
The second is the Middle-Agers’ Plan, designed for individuals between 35 and 50 years. It balances growth opportunities with investment stability as members move closer towards retirement.
The third is the Seniors’ Plan, intended for investors above 50 years, with greater emphasis on protecting accumulated wealth while generating stable income.
Mr Matekele said members can invest through regular monthly contributions or lump-sum payments. The Fund invests members’ contributions in various capital market instruments, including listed equities, corporate bonds, government securities, treasury instruments and other approved investments aimed at generating sustainable long-term returns.
He explained that professional fund management allows members to benefit from expert investment decisions while reducing the challenges many individuals face when attempting to manage long-term investments independently.
The nationwide awareness campaign will involve employers, employees, universities, labour organizations, SACCOs, community groups, entrepreneurs, farmers, women’s groups and youth organizations.
Through these engagements, FPRF aims to create a broader understanding that retirement preparation is not only for older people or formally employed workers, but a financial responsibility that should begin early in life.
Mr Matekele encouraged Tanzanians to recognize that every financial decision made today contributes to future security.
“Every investment decision you make today is an investment in your dignity, your family’s future and your financial independence tomorrow. Do not wait until retirement to begin planning. Start today—invest for retirement and live with financial freedom tomorrow,” he said.
Foresight Private Retirement Fund is licensed by the Capital Markets and Securities Authority (CMSA) and managed by CORE Securities Limited. NMB Bank PLC serves as the Fund’s Trustee and Custodian.
The establishment of FPRF represents a significant step towards expanding access to retirement investment opportunities in Tanzania. By promoting financial education, encouraging early investment and providing flexible investment solutions, the Fund seeks to help more Tanzanians achieve greater financial security and enjoy a dignified retirement.