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‘Most Ugandans live for 18 years after retirement’

For many retirees living in Uganda, the life expectancy after retirement from work is only 18 years, the Uganda Retirement Benefits Regulatory Authority (URBRA) has disclosed. Data from the retirement benefits authority suggests that this falls significantly below the life expectancy of individuals in First World countries, where retirement can span up to 110 years, the Monitor reports. “The government and all stakeholders in this sector should develop and implement good plans that are favourable to pensioners so that they live genuine life after retiring,” said Director of Supervision at UBRA, Daisy Lynda Nabakooza. Nabakooza urged individuals aged 18 to 25, employed in either the formal or informal sectors, to initiate retirement savings. She counselled them against exclusively prioritizing purchases such as the latest phones or cars, which is a common trend within this age group. More data from the authority further indicated that “in the real sense when a person was earning SHS 3 m...
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What are the various modes of retirement from the Public Service?

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The Pensions Act Cap 286 identifies a number of means through which an employee can leave the Public Service under pensionable circumstances. They include:- Retirement Type Conditions/ Entitlements Mandatory Retirement  39-65 for UPDF;  60 years for TPS, TS, LG and police & prison services;  65-70 for Judges and Justices  Entitled to life time pension and a commuted pension gratuity (optional) Early Compulsory retirement  On restructuring; abolition of office; divestiture/ privatization; excess staffing;  Attracts additional 25% pension;  Entitled to life time pension and a commuted pension gratuity (optional) Early Retirement  10 years of service  and 45 years of age  20 years of service and no age limit  Entitled to life time pension and a commuted pension gratuity (optional) Medical Grounds  Due to illness or injury  Granted by the appointing authority on the recommendation of the Medical Board Entitled ...
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Personal Finance Checklist for 2024; Bonus Tips.

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This lesson is a  follow up and expansion on the one we learnt yesterday.  I have spent a considerable number of years advising people about their personal finances and I have seen near miracles happen when people act.   Many years ago I coined a slogan “If you are not thinking then you are sinking” and I really don’t want you to sink in 2024; instead I want you to prosper. These things are not complicated at all!  1. You have to master your needs and deal decisively with your wants. For the uninitiated needs as those things you can’t live without and wants are though that you only buy if you have the capacity to do so. Reign in your expenditure because you are not an “Expendable”. There is a way tomorrow comes and finds you unprepared only to embarrass you; even in old age.  2. Make it a point to save even if you don’t earn enough. Most people think they don’t earn enough and wait for an increment in their earnings to save. Well since you don’t...
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Welcome to Class, the Class of 2024!

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A good teacher starts a new class by introducing himself, what the course is about, and how he will grade the class. In other words, we deal with the basics first. My name is Livingstone Mukasa. My work experience for the last 23 years has been about helping people make economic progress. I have been involved in product design, development, and introductions to markets, in the manufacturing and service sectors. In the last 8 years, I have been heavily involved in Fintech, building Africa’s first private Micro Pension Fund and doing financial literacy and advisory work. From managing other people’s businesses to starting and managing my own I have learned many lessons that I am inspired to share. I am a well-traveled person and have made friends across the globe. I am a husband, a family man, and a man of faith.   This class is about Personal finance and how we can make economic progress: I call it the Steetnomics Class. We will cover improving personal income, managing ...
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Think Retirement Planning beyond NSSF Savings!

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By its own admission, 98% of NSSF member payout is spent within the first 2 years. The fund likes to call this wastage, but I call it inadequacy. People simply receive peanuts after many years of work. The current average payout is UGX 16M. Put in mind that the average salary around Kampala and Wakiso is UGX 1,000,000. Using NSSF's recommended replacement rate of 60% means the worker needs to have a monthly income of UGX 600,000 per month. After 2 years the retired worker would have spent UGX 14.44M to pay their living expenses, hence the depletion after 2 years for 98% of the retired savers. The Uganda Retirement Benefits Regulatory Authority (URBRA) research shows that the average retired Ugandan spends 10 to 17 years in retirement. If we calculate UGX 600,000 and the maximum years in retirement, it means the worker needs to retire with a total amount of UGX 122,400,000 (i.e. 17 years X 12 Months X UGX 600,000). But this is not happening for 98% of the people that sav...
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What Happens if You Run Out of Money in Retirement?

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Last week I had a discussion with one of our members at Mazima Voluntary Individual Retirement Scheme who withdrew his National Social Security Fund (NSSF) benefits last year upon reaching the mandatory age of 55 years. He is still engaged in active employment but his worry is that the NSSF benefits have run out hardly after one year and he has no hope of getting near anywhere near what he got from NSSF. This article is intended for those who have not started saving for retirement as well as those whose retirement benefits may not be sufficient in retirement or those who are already in retirement and have run out of money. Running out of money in retirement is a real dilemma for many as it exposes you to financial hardship and reduced quality of life. You may need to rely on family members for financial assistance, reduce your standard of living, or make significant lifestyle changes. Retirement is a period of leisure, self reflection, and pleasure, but it also requires ind...
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OPINION: The Obstacles Ugandans Must Overcome For Successful Retirement

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By Daniel Alifaki A blissful retirement doesn’t happen by chance. It requires deliberate planning and sacrifices during your working years and the journey is not an easy one. There are numerous challenges that one must overcome to secure their well-being in their sunset years. Addressing these obstacles requires self-awareness of individual financial behaviours, a comprehensive understanding of the economic landscape, and the evolving pension system. A recent status of the labour sector indicated that Uganda’s unemployment crisis had deepened to levels last witnessed during the peak of the COVID-19 pandemic.  Businesses took layoffs to beat the high fuel and taxes that have increased their costs and eaten into their profits. Therefore, job market dynamics caused by difficulties in the business operating environment, technological advancements, and shifts in industry demands, have led to uncertainties in career trajectories. As individuals plan for retirement...
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