Africa-Press – Uganda. Uganda’s chief pension regulator has urged retiring workers to resist the temptation to hastily withdraw their National Social Security Fund (NSSF) savings, warning that unplanned cashouts often lead to financial hardship.
Speaking at a recent stakeholder forum, Martin Nsubuga, the Chief Executive Officer of the Uganda Retirement Benefits Regulatory Authority (URBRA), emphasised the need for careful financial planning before accessing retirement benefits.
“Many retirees withdraw their savings without a concrete plan and end up spending most of it on unanticipated expenses, particularly medical bills,” Nsubuga said.
“It’s critical that people think long-term and avoid making emotional or impulsive financial decisions at the point of retirement.”
Nsubuga advised retirees and those nearing retirement to consider safer and more sustainable financial options, such as investment schemes, Treasury bills, and government bonds.
These instruments, he said, help preserve capital while generating returns, allowing retirees to sustain themselves comfortably over the long term.
“We’ve seen time and again that without a structured investment strategy, retirement funds can disappear in just a few years. Medical emergencies alone can quickly deplete savings if no financial cushion is in place,” he added.
His warning comes amid growing concerns over financial literacy among retirees and the increasing burden of healthcare costs among Uganda’s ageing population.
URBRA continues to champion public awareness campaigns and financial advisory services to help Ugandans make informed decisions about their retirement savings.
The authority is also pushing for broader pension reforms that encourage savings beyond the formal sector, seeking to bring more workers into secure retirement schemes.
While the pension sector has recorded growth in recent years, challenges persist, particularly low coverage and weaknesses in the design of private pension plans.
URBRA is advocating for structural reforms aimed at ensuring sustainable, adequate, and secure retirement benefits for all Ugandans.
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