The Uganda Retirement Benefits Regulatory Authority (URBRA) has called for the formation of informal sector pension plans for Ugandans.
The URBRA Chief Executive Officer, David Nyakundi Bonyi made the call while speaking to members of the Private Sector Foundation Uganda in a workshop targeted at educating members of the informal sector on the benefits of saving for retirement.
The seminar was held in Lira.
“There is urgent need for the formation of an informal sector pension plan in various parts of the country which should cover all people involved in any income generating activity and not covered by formal schemes such as NSSF,” Nyakundi said.
Nyakundi said that about 95% of the 63 informal plans are in Kampala.
He further urged for the formation of regional schemes to support those living and working out of the city center.
According to statistics from the insurance Association, a large number of working Ugandans are retiring at the age of 60 and living for over 20 years; making a case for early savings for retirement.
The above indicates there is an urgent need to manage old age poverty which is on the increase in Uganda.
Some association members expressed distrust in the retirements saving schemes noting the difficulty of accessing their money.
Nyakundi, however, reacted saying that URBRA’s key mandate remains to regulate and supervise these schemes to ensure that the members are able to get their benefits when they are due.
July Joel Egwal, an accountant at Dokolo District, called for the extension of education on benefits for saving for retirements to higher educations and colleges for better implementation and behavioral change.
Moses Goli Ogwal, the Director of Policy Advocacy at the Private Sector Foundation-Uganda commented on the current state of associations in Lira, saying that they are eligible for voluntary schemes by NSSF and others for employer, individual and umbrella schemes and funds.
Ogwal pledged that the foundation would continue to work with URBRA to extend retirement education to Uganda’s informal sector.