The National Social Security Fund (NSSF) Uganda has launched a groundbreaking voluntary savings product, NSSF Smartlife Savings Plan, to increase social security coverage and empower Ugandans to secure their financial future. This innovative plan targets existing NSSF members, non-members in the formal and informal sectors, and the diaspora.
A Response to Members’ Needs
The NSSF Smartlife Savings Plan was born out of the 2021 NSSF Members Needs Research, which revealed that 60% of members wanted more voluntary savings options to address retirement, education, health, and business needs. “The NSSF Smartlife voluntary savings plan addresses these member needs and is flexible enough to enable a saver to choose mid to long-term savings goals,” said Patrick Ayota, NSSF Managing Director.
The Plan is an innovative savings solution that offers flexibility, affordability, and growth opportunities. With this plan, you can choose your savings goals, contribution frequency, and duration, allowing you to tailor your savings to suit your needs . The minimum contribution requirement is UGX 5,000, making it accessible to a wide range of savers.
Key Features:
- Flexibility: Select your savings goals, contribution frequency, and duration
- Affordability: Minimum contribution of UGX 5,000
- Optional Affordable Offerings: Enhance your savings with optional add-ons
- Daily Interest: Earn interest on your daily balance, credited monthly
- Minimal Withdrawal Costs: Exit early with minimal penalties
Additionally, it offers attractive interest rates, no monthly account management fees, instant transaction alerts, and access to a free VISA debit card ². The plan is designed to empower Ugandans to secure their financial future, and its features make it an attractive option for those looking to save for retirement, education, health, or business needs.
Expanding Social Security Coverage
The NSSF Smartlife Savings Plan aims to increase social security coverage to 50% of Uganda’s working population by 2025, focusing on underserved workers. “The Fund currently serves only about 2.3 million Ugandans, mostly in the formal sector. We must include informal sector workers, who contribute significantly to the country’s GDP,” Ayota emphasized.
It offers numerous benefits to its members. Key Benefits include:
- Flexibility: Members can set mid to long-term goals with affordable savings options
- Pension Benefits: Monthly pension benefits are paid to members who have reached the retirement age of 60 years, or 55 years if they have retired from formal employment.
- Financial Security: The plan provides financial relief, especially during difficult times, such as the COVID-19 pandemic.
- Increased Social Security Coverage: The plan aims to increase social security coverage to at least 50% of Uganda’s working population by 2025.
- Voluntary Savings: Members can make voluntary contributions, providing an opportunity for additional savings.
- Midterm Access: Eligible members can access up to 20% or 50% of their accrued benefits, depending on age and disability status.
- Financial Literacy: NSSF offers financial literacy programs to help members manage their finances effectively.
- Security and Returns: Members’ savings are secure, with competitive interest rates and returns.
These benefits demonstrate the value of the NSSF Smartlife Savings Plan in securing one’s financial future.
Who Can Join?
The NSSF Smartlife Savings Plan is open to:
- All Ugandans aged 16 and above with a National Identification Number
- Non-Ugandans living and working in Uganda with a valid passport
- Refugees in Uganda with valid identification
A Partnership for Progress
NSSF Board Chairman David Ogong praised the government for granting NSSF the opportunity to develop innovative products. Thadeus Musoke, Chairman of the Kampala City Traders Association, commended NSSF for empowering ordinary workers to control their finances.