NSSF records Shs80 billion from voluntary savers in one year

Uganda’s National Social Security Fund (NSSF) has mobilised more than Shs 80 billion in voluntary savings within just 13 months, signalling growing uptake of the Fund’s new savings option among workers outside the formal employment sector.

The voluntary savings initiative, introduced following amendments to the NSSF Act, allows informal sector workers and other micro-savers to contribute to the Fund with as little as Shs 5,000, expanding social security coverage beyond traditional salaried employees.

Previously, the NSSF savings scheme largely served workers in the formal sector whose contributions were made through mandatory deductions from their monthly salaries remitted by employers.

Speaking during the Southern Region Employers and Members’ Summit in Masaka, the NSSF Managing Director, Patrick Ayota, said the voluntary scheme has already attracted at least 50,000 savers under the Smartlife Flexi Savings Programme.

According to Ayota, the rapid growth of the scheme demonstrates increasing public confidence in long-term savings and is helping the Fund move closer to its target of reaching 15 million active contributors nationwide.

Ayota added that the Fund is also exploring new ways of expanding its impact within communities, including supporting agricultural value chains and export marketing for farmers.

He explained that NSSF has begun forming partnerships with international agricultural export companies to help link local farmers to reliable markets for their produce, an approach aimed at strengthening economic opportunities for members while increasing the Fund’s relevance beyond traditional retirement savings.

Pauline Nagaddya, the Benefits and Data Manager at NSSF, said the increasing number of micro-scale savers joining the scheme reflects growing awareness about financial planning and long-term income security, especially among workers in the informal sector.

She noted that the Fund has also expanded its physical presence by opening more agent outlets within communities, making it easier for members to deposit savings and access services closer to where they live and work.

Meanwhile, NSSF Chief Commercial Officer Geoffrey Sajjabi cautioned members against withdrawing all their savings immediately after qualifying for benefits.

He urged beneficiaries to carefully plan how they will use their funds, particularly those intending to invest in businesses, warning that withdrawing large lump sums without a clear plan can lead to poor financial decisions.

However, Joseph Sselunga, a teacher at St Mugagga Secondary School in Masaka District, called for stronger enforcement to improve compliance with the Fund’s regulations.

He noted that some employers in the formal sector still fail to remit workers’ contributions to NSSF, a practice that undermines workers’ long-term financial security.