By Hajj Hassan Nakabaale
The current lockdown owing to #Covid19 is a perfect time to reflect on
retirement. Many have argued that the time we are spending at home without going to work is similar to what happens during re-tirement.
They contend that just like in lockdown, people in retirement will not be able to access basic services, since they will have no jobs, no money, no friends and movement will be limited. Nothing could be further from the truth! Life in retirement need not be defined by such misery.
The Covid19 pandemic invaded the world unnoticed, and has resulted into uncer-tainty. Particularly in Uganda, the lock-down that was imposed to control the spread of the virus, has left many people stuck at home with limited access to ba-sics, their livelihoods halted and waiting for handouts from the government and good Samaritans.
While no one saw Covid19 coming, we all know that every passing day we inch closer to our retirement. It is therefore possible to plan for a good post-employ-ment life.
There are several arrangements through which Ugandans of all backgrounds and callings can ably save for retirement. Employers with more than five employees are under statutory obligation to register and contribute on behalf of their em-ployees to the National Social Security Fund (NSSF).
Civil servants, the military and employees in local authorities are members of the Public Service Pension schemes by virtue of statutory provisions. Ugandans employed in the informal sector can save with licenced voluntary retire-ment benefits schemes.
There is enough evidence to show that retirement benefits savings are highly beneficial to citizens.
Take an example of NSSF which has done a commendable job on timely payment of retirement benefits and regular follow-up of beneficiaries to see how they are utilizing their savings.
Under the Friends with Benefits project, many people have given testimonies and showed practically how NSSF savings have changed their lives. These are retired people who are above 55 years of age.
It is therefore possible and achievable to lead a poverty-free life after retirement.
How to manage a retirement benefits package
During the period of active work and employ-ment, all factors being constant, one should be able to create wealth, invest in income-generating projects and educate their children.
It is not advisable to wait to receive retirement benefits to start big projects like construction of a family home.
Retirement benefits, paid monthly for pub-lic servants or in lumpsum for NSSF savers, should be used to cover basic needs during one’s post-employment life. Retirement benefits and pension earnings are meant to cover needs like medical, food, electricity, transport bills etc. Some people may remain energetic, productive and employable after retirement.
Depending on one’s professional experience you may under-take professional consultancy services, write books, engage in trade, farming or even join politics.
Retirees are also encouraged to participate in community voluntary work through groups like rotary, Red Cross, churches or mosques. They can also mentor young people and pro-mote family-based activities.
Retirees should try to find activities in their communities to keep themselves busy, maintain old friends and possibly make new ones and therefore avoid loneliness and sadness. Given that we have a long time to prepare and save for retirement, it is rather far-fetched to compare life in the Covid19 lockdown to life in retirement.
Because of the social-distancing re-quirement, COVID19 separates family, and the confinement does not create value for money. however, retirement brings you closer to family and gives you time to engage in activities you truly enjoy.
Retirement is the time to enjoy the fruits of one’s youthful efforts and investments. Let us all save and prepare for retirement.******
The writer is Director, Communication and Public Affairs URBRA
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