Many people who have reached retirement age, he said, are forced to
continue working because they were “not in position to save and when
they cross over, they are not adequately prepared and continue to work
to survive”. FILE PHOTO
Ugandans must stop postponing saving for later, Uganda Retirement Benefits Regulatory Authority (URBRA), has said.
Speaking during a workshop that sought to sensitise university students on the importance of saving in Kampala last week, Mr Martin Nsubuga, the URBRA chief executive officer, said: “People tend to ignore saving for retirement. They think it starts when one gets a job. You can actually start saving as early as in school. The principle of saving small amounts of money at an early age means you are creating a bigger portfolio and the volumes you save today multiply much more than expected.”
Mr Benjamin Mukiibi, the URBRA director research and sector development, told participants, who included students, many Ugandans “do not prepare enough for retirement”.
Speaking during a workshop that sought to sensitise university students on the importance of saving in Kampala last week, Mr Martin Nsubuga, the URBRA chief executive officer, said: “People tend to ignore saving for retirement. They think it starts when one gets a job. You can actually start saving as early as in school. The principle of saving small amounts of money at an early age means you are creating a bigger portfolio and the volumes you save today multiply much more than expected.”
Mr Benjamin Mukiibi, the URBRA director research and sector development, told participants, who included students, many Ugandans “do not prepare enough for retirement”.
Many
people who have reached retirement age, he said, are forced to continue
working because they were “not in position to save and when they cross
over, they are not adequately prepared and continue to work to survive”.
According to available data, majority of Ugandans who are in the informal sector are not involved in any form of saving.
Currently, about 2.4 million Ugandans save through the National Social Security Fund, Public Service Pension Scheme, Supplementary Voluntary Occupational Schemes and Supplementary Voluntary Individual Schemes.
Currently, about 2.4 million Ugandans save through the National Social Security Fund, Public Service Pension Scheme, Supplementary Voluntary Occupational Schemes and Supplementary Voluntary Individual Schemes.
Mr
Mukiibi said with the current coverage figures covering both working
and ageing people, Uganda will still have people retiring to nothing.
“The
issues of coverage is of big concern to all of us because even those
who are actively working, if they do not prepare, they will either work
in retirement or in the event that they are sick, will be a burden to
family members,” he said.
Ageing workforce
By 2050, the ageing workforce will comprise mostly of self-employed and informal sector labourers to whom retirement benefits and security provisions are unavailable according to URBRA.
By 2050, the ageing workforce will comprise mostly of self-employed and informal sector labourers to whom retirement benefits and security provisions are unavailable according to URBRA.
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