Rédaction Africa Links 24 with Uganda Monitor
Published on 2024-03-28 05:33:24
The National Social Security Fund (NSSF) plays a crucial role in providing retirement benefits to its beneficiaries. A recent survey conducted by NSSF and Enterprise Uganda revealed that a significant number of beneficiaries use their retirement benefits for various purposes.
According to the survey, at least 40 percent of NSSF beneficiaries spend their retirement benefits on paying school fees for their dependents. This highlights the importance of education as a priority for many retirees. Additionally, 34 percent of beneficiaries use their benefits to purchase land, while 33 percent invest in building or improving their houses.
The survey also highlighted that 28 percent of beneficiaries invest in starting a business. This shows the entrepreneurial spirit among retirees who see an opportunity to create income even after retirement. The report emphasized the importance of financial literacy and entrepreneurship for retirees to make the most of their retirement benefits.
Interestingly, the survey found that many retirees continue to work or seek employment even after retirement. This is due to the high-dependency rates among their households, which consume a significant portion of their retirement benefits. The report noted that the benefits of many retirees are depleted within a few years of retirement, leading to a cycle of dependence and financial insecurity in old age.
Other common uses of retirement benefits included spending on food, healthcare, rent, repayment of loans, and other expenses. Beneficiaries also allocated a portion of their benefits to buying vehicles or motorcycles, purchasing clothes and footwear, and enjoying leisure activities.
The survey aimed to understand how NSSF beneficiaries utilize their benefits, identify post-retirement expenditure priorities, and inform product and service ideas for retirees. It also sought to learn from the experiences of beneficiaries to better assist those who are yet to claim their benefits.
The report revealed that a majority of retirees are still employed, run their own businesses, or are seeking employment opportunities. Only a small percentage of retirees are fully retired or unable to work. The average payout for NSSF retirees was reported to be Shs24m, with a significant number of retirees receiving under Shs10m.
Mr. Stephen Omojong, the NSSF research and product development manager, highlighted that the average investment into new businesses by retirees was Shs6.2m. This indicates that many retirees are pursuing entrepreneurship by starting micro or small businesses with their retirement benefits.
In conclusion, the survey shed light on the diverse ways in which NSSF beneficiaries utilize their retirement benefits. It underscored the importance of financial literacy, entrepreneurship, and prudent financial planning for retirees to ensure a secure and comfortable retirement.
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