The National Social Security Fund (NSSF) has launched a smarter way to boost the saving culture and commitment among working Ugandans, with the Fund aiming to achieve 50% coverage of the working population by 2035.
The revelation was first made by the Managing Director of NSSF, Patrick Ayota, at the Kampala Serena Hotel on Wednesday, November 20, 2024, during the launch of Smart Life Flexi, the voluntary saving scheme designed to improve saving culture among Ugandans.
Speaking during the event, Ayota said that the initiative will enable members of the fund to set personal savings requirements, personal contributions, and also determine how often they will be saving without conditions.
He also reiterated that it was time for Ugandans to start saving more, stating that a shocking 90% of people in Uganda had no savings during the COVID-19 pandemic.
“Our study indicates that almost 98% of Fund members who take out their savings have no other savings options,” Ayota said.
The Smart Life Flexi plan is specifically intended for individuals at all life stages, starting with young professionals in their early twenties and moving all the way to people at close to retirement age. It also encourages users to take initiative and actively plan their financial future by consolidating savings.
“Our goal is to make saving an essential part of life for everyone in Uganda,” Ayota said.
Currently, only about 14% of working Ugandans subscribe to NSSF, which roughly corresponds to about 1.2 million people working in the formal sector. The Fund also appreciates the considerable numbers of people in the informal economy and the diaspora, more than 8.7 million and 781,440, respectively, who still lack sufficient savings options. Ayota pledged to extend this coverage in the next 10 years, advancing forward to meet the forecast compression of 30%.
To support this initiative, NSSF intends to increase its total managed assets to UGX 50 trillion by the catch-up period, registering a 95% satisfaction rate among its membership. The strategic investment of the fund will be on infrastructure development and industrialization, aligning national priorities and achieving sustainable economic growth.
Additionally, to the Smart Life Flexi launch, NSSF is integrating educational programs designed to enhance financial literacy among the people of Uganda. These programs will be focusing on personal finance, including management, retirement, and investments, and ultimately empowering individuals with the knowledge they need to make informed financial decisions.
