15 million Ugandans lack retirement savings
Out of the 18 million workers in Uganda who could save for retirement, only three million do so, according to the Uganda Retirements Benefits Regulatory Authority (URBRA).
URBRA CEO Mr. Martin Nsubuga stated that only three million Ugandans save for retirement, leaving over 15 million uncovered, during the launch of a study for the establishment of a National Long Term Savings Scheme.
He said that because of this, the majority of Ugandans—many of whom formally retire between the ages of 55 and 60—are exposed to various vulnerabilities.
Nsubuga also mentioned that although many Ugandans have the ability to save for retirement, there isn’t a strong enough structure in place to enable these individuals to be organized to save.
Nsubuga states that there are about eight million people who are known to be able to save money but are not being contacted. He reveals that the study found that although people may need incentives to save, there are situations when saving must be enforced.
He added that, should it be approved, the National Long Term Saving Plan will complement currently in place programs like the NSSF, primarily aimed at the informal sector but also providing extra savings for individuals.
“We look at the new and current population, we believe this will enhance savings- we wont force people to save but we will levearge on incentives to attract people,” Nsubuga emphasized
In order to help over 15 million people enter the retirement benefits saving bracket, URBRA is presently working on the details of how to set up a National Long Term Saving Scheme.
