October 31st 2021- It is World Savings Day again! A time to reflect on our saving attitudes and practices. This year’s theme “Save as soon as you earn” connotes urgency – save without delay; start today!
To start with, you must have a purpose. Why are you saving? What challenge do you want to address or what dreams are you nurturing? What about the unforeseeable issues? Do you have savings for unanticipated situations like the Covid19 pandemic?
Unlike emergencies like Covid19, some situations are foreseeable. Take retirement for example. It does not just happen; we grow towards, retirement day by day. Yet, we still don’t heed the advice to save for retirement. The annual sector performance report of 2020 shows that out of Uganda’s estimated workforce of 15.9 million, only 2, 821,910 are covered by the existing retirement saving arrangements.
Save as soon as you earn implies urgent action. Don’t wait until you are left with five years to retire; don’t wait until you start earning a big salary. Start today; start with your first earnings. And when you save, let the money grow through different investment channels. When you eventually retire, find ways of preserving your retirement funds – don’t get your savings and blow them up in one year!
A special appeal goes out to the youth. When you are young, it is very tempting to live month by month, purchasing all the things you desire, without making any savings. Research shows that accumulation of savings is at its highest among savers in the age bracket of 20-45 – your most productive years. Above age 40, earnings and savings tend to slow down.
So how do you start saving for retirement? The retirement benefits sector is vibrant, well-regulated and efficiently supervised. Whether you’re in formal or informal employment, you can start saving for retirement. The regulator, URBRA, gives you assurance that your funds are safe, well-invested and will bring you a good return.
URBRA encourages all Ugandans to start saving early, start with whatever small resources you have and let the money grow over a long time to ensure adequacy and preservation. If you can do these simple things, you’ll be set for an enjoyable and comfortable retirement.