The National Social Security Fund (NSSF) has launched the NSSF Smartlife Savings Plan, a voluntary savings product aimed at expanding social security coverage. This initiative targets existing NSSF members, non-NSSF members in the formal sector, the informal sector, and Ugandans in the diaspora.
The initiative is designed on a voluntary membership principle that allows members to choose how much to save, when to save, for how long, and when to exit without condition
The launch follows the issuance of the National Social Security Fund (Voluntary Contributions and Benefits) Regulations, 2024, by Betty Amongi, the Minister of Gender, Labour and Social Development, on November 8, 2024.
Speaking at the launch event in Kampala, NSSF Managing Director Patrick Ayota highlighted that the new product stems from amendments to the NSSF Act, allowing the Board to introduce innovative products based on member needs.
“In 2021, we conducted the NSSF Members Needs Research. It revealed that 60% of our members wanted more voluntary savings options to address their retirement, education, health, and business capital needs,” Ayota stated.
The NSSF Smartlife Savings Plan offers flexibility, enabling savers to set mid to long-term goals with affordable contributions starting from Shs5,000. Contributions can be made at the saver’s chosen frequency, with returns computed daily and credited monthly. While the minimum lock-in period is one-year, early withdrawals are allowed with minimal costs.
Ayota emphasized that anyone can make voluntary contributions, including mandatory members looking to make top-ups. “We designed this plan to be flexible and affordable, catering to various saver needs,” he added.
The Smartlife Flexi component is part of NSSF’s strategy to increase social security coverage to at least 50% of Uganda’s working population by 2025. Currently, the Fund serves approximately 2.3 million Ugandans, predominantly in the formal sector. The new plan aims to include the informal sector, which plays a significant role in the economy yet remains largely unprotected.
Eligible participants include all Ugandans aged 16 and above, as well as non-Ugandans living and working in Uganda with valid identification. The plan empowers savers to choose their saving amounts, timing, and duration, with goals starting from a minimum of one year.
NSSF Board Chairman David Ogong expressed gratitude to the government for supporting the Fund’s efforts to introduce flexible saving options. He urged members to leverage the Smartlife Flexi plan, citing NSSF’s strong track record in safeguarding and growing member savings.
Thadeus Musoke, Chairman of the Kampala City Traders Association, praised NSSF’s innovation, noting that the Smartlife Flexi plan gives traders better control over their finances, promoting capital growth through consistent saving.
He said, “In Uganda, we have a bad culture of accumulating capital through savings and instead opt for loans whereby members’ property is at most times auctioned until KACITA comes to mitigate.”
