NSSF Launches Flexible Savings with Minimum Shs500 Contributions

The National Social Security Fund (NSSF) is rolling out an updated voluntary savings scheme that lets workers contribute starting from just Shs500. This step comes after Cabinet and Attorney General approval, aiming to draw more informal sector workers into retirement savings, targeting 15 million by 2035.

NSSF Managing Director Patrick Ayota announced this during a project handover in Kayunga District. He highlighted the success of the SmartLife Savings Scheme launched in 2024, which has signed up 3.4 million voluntary savers across 113,300 accounts, growing assets to Shs30 billion.

This aligns with NSSF Vision 2035, a strategy to expand assets under management to Shs50 trillion, cover 50 percent of the working population, and achieve 95 percent satisfaction rates for customers and staff. It builds on 2022 reforms emphasizing savings security, convenience, and empowerment.

Gender, Labour and Social Development Minister Betty Amongi noted that only 11 percent of Ugandans have conventional social security coverage, excluding 90 percent. She praised initiatives like SmartLife for enabling targeted savings and building financial capacity.

The new SmartLife Flexi product, enabled by recent regulations, responds to 2021 research showing 60 percent of members wanted more voluntary options for retirement, education, health, and business needs. Contributors can start at Shs5,000, with daily balance returns credited monthly, a one-year minimum lock-in, and low-cost early withdrawals.

This targets Uganda’s informal sector, a key economic driver yet underserved by traditional systems.

Source: Daily Monitor (Uganda)