Tanzania: Social Security Regulator Deserves Praise

ON Tuesday this week, the Social Security Regulatory Authority (SSRA) shelved a new social security plan, in which it suspended withdrawal benefit for six months.

The withdrawal benefit enables members of social security funds across the country to withdraw their benefits before the voluntary and compulsory retirement age of 55 and 60 years, respectively, as required by the law which was amended in April, this year. It should be recalled here that one of the major functions of SSRA is to protect and safeguard interests of members, while making sure that social security schemes remain strong and sustainable.

Before the public notice in August, that followed amendment of the legislation in April, this year, members of pension funds who had through various reasons had their employment contracts ended before the retirement age were able to withdraw their benefits six months, after they ceased working.

In Tanzania today, the prospect of retiring early can seem more unrealistic than ever, under the current difficult economic conditions. However, there are some advantages when one takes this route, especially for those who have big plans for their lives after their current careers.

This is because the one who retires early can start implementing things that others will have to wait a few more years to do, such as opening private business or engaging in farming. Taking into consideration the current situation where some employees are hired on contract, workers who collect their benefits may buy shares in listed companies and subsequently get dividends.

Not everyone is content to sit back on a rocker after they stop working. Entrepreneurial types can use their past work experience to embark on a new career or start their own business using their accumulated knowledge and professional contacts. Those who are able to stop working early can save themselves several years of job-related stress and other ailments that come with most jobs.

Although the actual benefit paid from Social Security or a company pension plan is most likely lower for early retirees, the recipient may still come out ahead over time if he or she plays the cards rightly by investing prudently. In most cases, being able to retire early can earn one the respect from his or her fellow workers, friends and family.

Not many people are able to successfully do this in this world. To retire early is to retire in style, assuming that it is properly planned for, as a way of avoiding some unforeseeable problems. Of course, the benefits of early retirement must be carefully weighed against the potential risks and drawbacks.

Those who fail to carefully plan for an early retirement may find their savings running out at a point in their lives when they are unable to do much about it and may have to depend on the kindness of friends or family. Young workers who opt for retirement should clearly plan how to use their money before they start the process of collecting their final benefits.