Financial retirement planning among manufacturing SME owners in Tanzania: a moderated mediation model

Financial retirement planning remains a significant challenge in developing economies, particularly among manufacturing SME owners operating outside formal pension systems. However, existing studies have largely examined retirement planning determinants separately and within formal-sector, leaving limited understanding of how psychological, cognitive, and institutional issues jointly influence retirement planning among SME owners. The current study examines the influence of retirement goal clarity and financial self-efficacy on financial retirement planning, mediating role of financial literacy and moderating role of perceived government policy. Data were collected from 387 manufacturing SME owners across major Tanzanian regions and analysed using PLS-SEM. The results show that financial self-efficacy and retirement goal clarity significantly influence financial retirement planning both directly and indirectly through financial literacy, indicating partial mediation. While perceived government policy does not exhibit a significant direct influence, it significantly strengthens the influence of retirement goal clarity on financial retirement planning, highlighting its conditional role. This study contributes to theory through extending Intentional Change Theory (ICT) through contextualising its core constructs within financial retirement planning among manufacturing SME owners. Practically, the results highlight the importance of combining financial literacy initiatives with supportive policy environments to enhance retirement preparedness among manufacturing SME owners.