Start early to save for retirement, says URBRA

According to Mr Nakabaale, many students in Uganda have no appreciation of having a good savings culture, which is a key aspect in financial growth.  

In Summary

• According to Mr Nakabaale, many students in Uganda have no appreciation of having a good savings culture, which is a key aspect in financial growth. This he says, exposes students to a hard reality once they begin working.

By Henry Mulindwa

Kampala. Uganda Retirement Benefits Regulatory Authority (URBRA) has launched a programme that seeks to promote a saving culture among secondary and university students.

While conducting the retirement seminar for students at Namasuba College of Commerce last week, Mr Hassan Nakabaale, the URBRA director communication and public affairs, said they will be conducting seminars in schools with the view of enlightening students to appreciate the good side of saving for retirement.

“The objective of these seminars is to inform students on the importance of long term savings, career prospects in the retirement benefits sector and roles of actuaries in the pension sector,” he said.

Uganda is one of the countries with the lowest savings culture in the world.
According to Uganda Bureau of Statistics, only 12 per cent of Ugandans have bank accounts while Bank of Uganda research shows that just about 3 to 5 per cent of Ugandans regularly save.
The low saving culture has been a key driver in perpetuating poverty due to the fact that few Ugandans have the capital to start or promote their businesses.

Mr Nakabaale said URBRA will also launch retirement benefits clubs in schools, which will be driven by student ambassadors to disseminate information about saving and retirement.
“We are going to equip these clubs with all the knowledge and skills about saving and retirement.

We want these clubs to be established in different schools across the country such that they disseminate information about the importance of early saving, opportunities involved and how to plan for retirement,” he said.

Hard reality

According to Mr Nakabaale, many students in Uganda have no appreciation of having a good savings culture, which is a key aspect in financial growth. This he says, exposes students to a hard reality once they begin working.

hmulindwa@ug.nationmedia.com