45 percent of pensioners continue to work after retirement, NSSF survey finds  

The NSSF report shows that there is a high dependency on beneficiaries above the age of 45, which makes them stay in employment even after retirement. Photo / Edgar R Batte 

What you need to know:

  • At least 60 percent of NSSF beneficiaries receive less than Shs10m, which is not sufficient for retirement  

At least 45 percent of pensioners continue to work after retirement to meet life needs, many of which cannot be met by paid-out benefits, according to the National Social Security Fund (NSSF) head of research and product development. 

While presenting findings on the recently concluded NSSF National Beneficiaries Survey Report, Mr Stephen Omojong, the NSSF research and product development manager, said although a beneficiary receives an average of Shs24m, 60 percent received less than Shs10m, noting that NSSF benefits are not sufficient for retirement. 

“Members need to multiply the meagre benefits to survive on them longer. The needs of life after retirement are not being met by just NSSF benefits but through a combo of other strategies. 45 percent retirees continue to work past the retirement age,” he said, adding that they had found that 4 percent of retirees seek employment well into retirement. 

The report conducted in partnership with Enterprise Uganda sought to assess the performance of benefits and perceptions towards retirement as well as enable the two organisations to develop a better understanding of how retirement benefits are utilised and learn about the quality of life of former members. 

The report also found that there was high dependency on beneficiaries over the age of 45, which makes it impossible for them to enjoy their benefits, some of which are accessed through mid-term. 

“Beneficiaries at that age still have major responsibilities like education and housing. Due to this, many opt to continue working to stay afloat; 63 percent of the beneficiaries were still in active employment,” Mr Omojong said.  NSSF also found that among members aged 50 and above, 45 percent were still working full or part-time, while many retirees tended to make wrong financial decisions, especially through the influence of friends and relatives. 

“Roughly 79 percent of beneficiaries already had plans for their benefits, this explains the low uptake of financial literacy since members being proud of their plans will tend to be less receptive to advice or education,” Mr Omojong said.
The survey also found that beneficiaries from eastern Uganda mostly rely on non-expert financial advice to invest their benefits, followed by those from western and northern Uganda