Abstract:
Financial literacy is an important component in financial planning and retirement planning. The
study was aim to assess the impact of financial literacy to retirees on retirement planning, specifically; to determine the relationship between financial knowledge and retirement planning
among retirees in Arusha pensioners, to investigate the effect of financial attitude on retirement
planning behavior among Arusha pensioners retirees and to analyze the financial attitude on
retirement planning decisions among retires in Arusha pensioners. With the help of theories
such as the life cycle theory, continuity theory, behavioural finance theory and theory of planned
behaviour which was used to answer the objectives of the study. A total of 67 respondents were
used for the study. The study identified that financial literacy has a significant positive influence
on retirement planning, that is the financial education, financial knowledge and attitude towards
financial product was most important among the retires, people with more knowledge and
education was able to save money for future after retirement likewise having the positive attitude
among the retires was likely to be statistically significant on retirement planning (provision on
these factors has led to an improvement in retirement planning among the retires). The study
documented recommendations as employees are advised to partake in financial literacy
seminars which are organized by their employers, improving knowledge will have a positive
impact to retires, it is important for self-organized pension schemes, Workers before retirement
are advised to engage in self-learning through books or online education on personal finance
