As we mark World Savings Day, the Uganda Retirement Benefits Regulatory Authority (URBRA) reiterates the message that with the right environment and a good saving culture, retirement savings can contribute significantly to national development.

The right environment is characterized by clear regulations, policies and guidelines, while the right saving culture is characterized by citizen’s commitment to long-term saving. Thus, at URBRA, we encourage Ugandans to capitalize on a stable, well-regulated sector and start saving for retirement to avoid old-age poverty.

Today’s theme: start small, grow big, resonates with URBRA’s message that citizens can save for retirement starting with the little they have. Any citizen can now save with a licensed retirement benefits scheme, starting with as little as UGX2000 per day.

Under URBRA’s strict regulatory and supervisory framework, savings are prudently invested and citizens should have the confidence that they will get a good return – as is often witnessed when retirement benefits schemes declare annual interest.

Apart from benefits at individual level, retirement saving also benefit the nation as a whole. Because Ugandans have consistently saved with their schemes, the retirement benefits sector has grown from less than 4 trillion in 2011, to over 20 trillion as at June 2022.  Over the past ten years, the retirement benefits sector contribution to the national Gross Domestic Product (GDP) has grown to 11.1% as of December 2021.  Additionally, the sector investment portfolio has grown consistently, with over 76% invested in government securities.

While formal employment has a structured plan for retirement saving, it covers a very small percentage of Ugandan’s working population. Out of an estimated workforce of 15.9 million, only about 18% are covered under existing retirement saving arrangements. Thus, the majority of Ugandans, particularly in the informal sector, are working hard and contributing to the economy, but it is not clear whether and where they are saving for retirement.

Many falsely believe that with informal employment one doesn’t have enough earnings to save for retirement.

Today’s theme reminds us that you don’t have to earn a lot of money to be able to save for retirement; you only need the right mindset and a conducive environment.

I therefore reiterate the message in today’s theme: Start small, grow big… and while at it, be green smart and take care of the environment in which you thrive. That way you will enjoy a happy retirement in a pristine environment.

URBRA remains committed to protecting your retirement benefits. For more information, visit our website: www.urbra.go.ug or visit us at Plot 1 Clement Hill Road.

Happy World Savings Day!