Social security fund to host investment conference for membersByarugaba said members need to plan ahead.
May 29—Once paid their benefits, almost all National Social Security Fund (NSSF) members spend the money within a year which according to management reflects a dire need for investment advice. The Fund has assets of close to $3 billion.
NSSF pays out over UGX 44 billion (nearly $12 million) in benefits annually, but only 11% pc of the 17 million Ugandan work force is saving with the Fund.
NSSF) will host its first ever Investment and Wealth Management Symposium on June 10, 2019 aimed at helping its odd one million members make sensible financial and investment decisions.
According to a 2018 survey conducted by NSSF, retirement beneficiaries were asked to compare the quality of life before and after receiving their beneficiaries. Almost 98 pc admitted blowing away their money in the first year after receiving it while the rest reported some level of financial independence after getting their benefits.
Richard Byarugaba, the NSSF managing director, said in mid-week this is due to lack of professional advice on how and where to invest or use up their savings.
He said, “The survey shows that 56 pc of Ugandans get their financial advice from household members or relatives. It also shows that 45 pc of the beneficiaries invest in non productive ventures like completing or building new homes which means they do not have money left to enjoy their retirement age.”
The Symposium is expected to attract over 1,000 people who will be exposed to tailor-made business solutions available from various financial services providers. There will also be external guest speakers who will talk about ‘Wealth Creation and preservation for Generation’. Other topics will cover how to create wealth through capital markets and real estate.
“This Symposium is only part of our financial literacy program at the Fund. Through this initiative, we want to offer professional financial and investment advice’s to our members to enable them make better decisions when they get their retirement funds,” Byarugaba.