NSSF targets small savers with new product plan 

The National Social Security Fund has launched the SmartLife Flexi savings plan to encourage the savings culture amongst Uganda.

Differing from the mandatory NSSF saving schemes that most Ugandans subscribe to, the SmartLife Flexi savings plan offers Ugandans from the informal and formal sectors an opportunity to save with the fund, starting with a minimum of Shs 5,000. For such savers, they can even access their savings after one year.

The NSSF SmartLife savings plan follows the publication of the National Social Security Fund (Voluntary Contributions and Benefits) Regulations, 2024, issued by the minister of Gender, Labour and Social Development.

The SmartLife Flexi is part of the fund’s strategy to increase social security coverage to at least 50 per cent of Uganda’s working population by 2035. The NSSF has placed a lot of effort in targeting underserved workers.

“In 2021, we conducted the NSSF Members Needs Research as we prepared to develop new products. At least 60 per cent of our members told us that they were not saving enough and wanted more voluntary options. The research also affirmed that members need more products that address their Retirement Fund needs, education, health and capital accumulation to start a business or seed acquisition,” Patrick Ayota, the managing director of NSSF, noted.

Ayota added that the fund currently serves only about 2.3 million Ugandans, the majority of whom are in the formal sector. Many of the informal sector workers remain left out of the social security and protection net yet they contribute significantly to the country’s economy.

Ayota highlighted that the informal sector saving with NSSF is critical if the fund is to realise its Vision 2035, which focuses on expanding its reach to 50 per cent of the working population, and growing the fund’s assets to at least Shs 50 trillion from the current just over Shs 20 trillion, and achieving a 95 per cent member satisfaction rate.

Ayota explained that NSSF SmartLife voluntary savings plan addresses member needs and is flexible enough to enable a saver to choose mid to long-term savings goals but also offers an opportunity for optional affordable offerings.

Thaddeus Musoke, the chairman of Kampala City Traders Association, commended NSSF for its innovation, highlighting that the SmartLife Flexi savings product will empower workers with more control over their finances.

“I am confident that through our partnership with NSSF, we will champion this innovation to bring value to the trading community. SmartLife Flexi will help traders build capital through consistent saving and avoid expensive credit,” he noted.