Business

Uganda’s Retirement Benefits Sector Grows by 25%

The Executive Director Uganda  Retirements Benefits Regulatory Authority (URBRA), Mr. David Nyakundi Bonyi addressing journalists on the 2015 sector performance at the URBRA head offices on Tuesday.

Uganda’s pension sector has registered growth in its asset base at a rate of 25% in assets from Ugsh 5.2 trillion in 2014 to Ugsh 6.5 trillion in 2015. Total inflows include employers’ and members’ contributions, pills http://communique-de-presse-gratuit.com/wp-content/themes/default/images/header-img.php income from rents, viagra interest, capital gains and dividends.

The ratio of pension assets to GDP edged at 8.1% at the end of 2015 compared to 7.2% at the end of 2014. Similarly, return on investment grew by 18.2% according to Uganda Retirements Benefits Regulatory Authority (URBRA).

In the 2015 sector performance report, at least 16 employers introduced retirement saving schemes. Of these, 6 were occupational pension schemes, 10 employers and an additional 2 informal sector schemes for workers who were registered.

Header advertisement

On Tuesday while briefing the media on the performance of last financial year, URBRA Executive Director David Nyakundi Bonyi attributed the growth in the sector to sensitization, good governance and increased realization of the importance of saving among Ugandans.

Asset performance grew n while “However we need to see more formal employers setting up pension schemes to tackle the problem of poverty in old age. The existing ones need to diversify their investments and optimize their cost of administration to enhance value for money,” Mr. Nyakundi remarked.

He advised the small start-up schemes, to join the established umbrella funds to help them manage their resources properly and get to better returns on investment. In 2015, operating costs for the schemes generally dropped by 27% from Ugsh 112 billion in 2014 to Ugsh 82 billion in 2015.

The report indicates that allocation to bonds continue to dominate investments with a 14% return on investments.  Other investments are made in fixed deposits, investment property, quoted and private equity.

About 17.2 million Ugandans are currently in the labor force, according to the 2014 population census. Of these, 15.6 million are employed. However with a dependency ratio at 103%, it is critical that those employed adapt the trait of saving for old age.

URBRA says there are 62 pension schemes in Uganda today, National Social Security Fund (NSSF) being the biggest with 1,573,354 registered members.

Comments

Header advertisement
To Top