Pensions Regulator Asks Informal Sector Workers To Save Top story

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In short
Workers in the informal sector have hardly invested in pension schemes to benefit them when they are unable to work, the Uganda Retirement Benefits Regulatory Authority URBRA has said.

Workers in the informal sector have hardly invested in pension schemes to benefit them when they are unable to work, the Uganda Retirement Benefits Regulatory Authority (URBRA) has said.

URBRA Chief executive officer, David Bonyi says workers in the informal sector could expand Uganda's pension sector as well as contribute to the development of capital market and the formation of a long-term savings.

He says only  600,000 members are actively saving for retirement with the mandatory National Social Security Fund (NSSF), while 400,000 civil servants together with current pensioners are covered under the Public Service Pension Scheme.

Bonyi says the government may need to also invest in schemes to provide old personers who may have missed the opportunity to save for pension.

Only two informal sector workers' schemes are now licensed by URBRA to run pension schemes.

So how can the workers in the informal sector be attracted to save for pension? And what is happening in the pension sector?

We have an interview with David Bonyi.

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Local and international population studies have indicated there will be 106 million people in Uganda by 2050. The Population Secretariat has also indicated that by 2050, Uganda will have about 6.3 million people aged between 60 and 80. There are fears that without any form of pension, those senior citizens could live in abject poverty.