(Kampala) – The National Social Security Fund (NSSF) has launched a new voluntary savings product called the NSSF Smartlife Savings Plan, designed to extend social security coverage to a broader population. This initiative targets both existing NSSF members and non-members, including workers in the informal sector and Ugandans living abroad.
Patrick Ayota, the managing director of NSSF, made the announcement during the launch event on Wednesday, November 20, 2024, at the Kampala Serena Hotel. He highlighted the fact that the Fund currently serves only around 2.3 million Ugandans, most of whom are in the formal sector. According to Ayota, the informal sector, which significantly contributes to Uganda’s GDP, has been left out of the social security safety net until now.
Ayota further explained that the new savings product is crucial for the Fund’s Vision 2035, which aims to expand its reach to 50% of Uganda’s working population, grow its assets to at least UGX 50 trillion, and achieve a 95% satisfaction rate among its members. The introduction of this voluntary savings plan is seen as a key step towards achieving these ambitious goals.
Research conducted by the Fund revealed that 60% of its members expressed a desire for more voluntary savings options to address various financial needs, including retirement, education, health, and business capital. The Smartlife Savings Plan aims to address these concerns by offering flexible saving options. Participants can start with contributions as low as UGX 5,000, allowing for both short-term and long-term savings goals.
For existing mandatory NSSF members, the plan offers the possibility to make voluntary top-ups, while non-members can also join the scheme. The returns on investments are calculated daily and credited to members’ accounts monthly.
Thadeus Musoke, Chairman of the Kampala City Traders Association (KACITA), praised the innovation, noting that the Smartlife Flexi savings plan would provide ordinary workers, particularly traders, with greater control over their finances. He expressed confidence that the partnership between NSSF and KACITA would help bring value to the trading community, particularly by enabling traders to build capital through consistent saving and avoid falling into debt traps.
The Smartlife Voluntary Savings Plan is open to all Ugandans aged 16 and above, whether they live in Uganda or abroad, as long as they have a National Identification Number. Additionally, non-Ugandans living and working in Uganda with a valid passport, as well as refugees in Uganda with valid identification, are eligible to participate in the plan.
