NSSF’s voluntary savings plan hit sh2b

KAMPALA - The National Social Security Fund (NSSF) has seen its voluntary savings plan, Smartlife Flexi, grow to sh2b in assets under management in less than six weeks, according to the fund.

Barbra Arimi, head of marketing and corporate affairs at NSSF, said more than 6,500 individuals have enrolled in the scheme since its launch in November last year.

The Smartlife Flexi product is designed to expand social security coverage by offering a voluntary savings option for both existing NSSF members and non-members, including informal sector workers and Ugandans in the diaspora.

The product allows savers to set mid-to-long-term financial goals and make contributions starting from as little as sh5,000.

“Our reason for rolling out this product is because most of Ugandans never think of the medium to long-term goals. 98% of the people who come to get their NSSF do not have any other savings and when they get their money, they try to address medium-term goals and short-term goals,” Arimi said.

A study conducted by the fund revealed that 60% of its members were seeking additional voluntary savings options to meet retirement, education, health, and business capital requirements.

The introduction of the Smartlife product has expanded savings opportunities for both investors and NSSF members, while also intensifying competition in the collective investment schemes (CIS) market.

Meanwhile, CIS assets under management surged 63.2% year-on-year to 3.85 trillion shillings by December 2024, according to the Capital Markets Authority's latest quarterly report.