‘Most Ugandans live for 18 years after retirement’
What you need to know:
- Information from the retirement benefits authority indicates this is way below the life expectancy of those in First World countries who can live up to 110 years after retiring.
The Uganda Retirement Benefits Regulatory Authority (URBRA) has revealed that most Ugandans’ life expectancy after retiring from work is only 18 years.
Information from the retirement benefits authority indicates this is way below the life expectancy of those in First World countries who can live up to 110 years after retiring.
URBRA is a government agency tasked to supervise the National Social Security Fund (NSSF), retirement benefit schemes for government ministries, departments and agencies (MDAs) as well as schemes for private sector players.
URBRA data reveals that even after retiring, Ugandans only get 20 percent of their gross salary net that they were earning while working. This pales in comparison to 80 percent mustered globally.
“In real sense when a person was earning Shs3 million while working, he or she should be getting Shs2.8 million per month after retiring from his or her retirement savings,” the information from UBRA shows.
Lifestyle
According to the authority, this is so because one is already used to a certain type of lifestyle. So, to maintain that, one needs that amount of income monthly. Most of these meagre resources come when prices of goods and commodities like petrol, diesel and food items are on the rise making life hard for pensioners.
Ms Daisy Lynda Nabakooza, the director of supervision at UBRA, said there should be deliberate efforts by the government and all stakeholders who deal with retirement schemes where workers save their earnings to make sure they increase income earnings for pensioners.
“[The] government and all stakeholders in this sector should develop and implement good plans that are favourable to pensioners so that they live a genuine life after retiring,” she said.
Ms Nabakooza called on youth aged 18 to 25 who are working either in the formal or informal sector to start saving for retirement. She advised them not to focus their attention on buying the latest phones, cars, among others as is the norm with most people in this age bracket
Ms Nabakooza said most people who do not save or plan properly for their retirement always end up not living a comfortable life and die way too soon after retiring.
