Exploratory on the Social Capital and Private Saving Theories for Integration of Voluntary Contribution to Pension Scheme in Tanzania

Document Type



Institute for Educational Development, East Africa


The study reviewed two theories, namely Social Capital and Private Saving. Both explain the significance of voluntary contributions to the pension scheme. They used the approaches to offer insights into how voluntary contributions towards social security schemes are built up and their implication to informal sector actors. The study reviewed the social capital and private saving theories’ effect on voluntary pension scheme contributions. The two approaches were critically assessed on their relevance to voluntarily contributing to a pension scheme in Tanzania. They showed to embed important sociocultural attributes such as networks, mutual support, and norms that facilitate cohesive support between actors (individuals and organisations) governed by standards and trust that enable them to pursue shared goals and objectives for mutual benefit. Theories showed an emphasis on workers contributing to a pension scheme for the betterment of their retirement age. This is a critical time since senior citizens cannot continue to work due to old age.

Publication (Name of Journal)

European Journal of Development Studies