Explain what Pension is in the Ugandan setting?

Pension is regarded as putting aside an amount of money off your income inform of savings and the major focus is on retirement the benefits vary depending on the stakeholder involved. Traditionally societies in Uganda and Africa at large took care of their elderly in a communal setting to ensure access to good shelter and food. Other necessities such as medical and nursing care were also provided as required by the individual. However, due to the ever changing social and economic wellbeing nuclear families have continuously been replaced by nuclear families. This commitment to provide for one another has diminished. This situation has forced Ugandans to think of alternative ways of saving for their retirement by either buying individual pension plans or contributing a percentage of their salaries group pension schemes set up by employers to achieve increased employee attraction and retention, good employer image, collective growth of personal assets and offers various approaches to meeting one’s retirement objectives. How does it work? The retirement benefits (commonly referred to as pensions) have existed in Uganda since the enactment of the Armed Forces Pensions Act (Cap 298) which came into force on 3rd September 1939. The sector has registered tremendous growth especially after the establishment of Uganda Retirement Regulatory Authority (URBRA) in 2011 whose objective was to regulate the establishment, management, and operation of retirement benefits schemes.

Pension in Uganda is taken up as a retirement fund where an organization focuses on contributing a percentage on behalf of employees’ future retirement. However, are also encouraged to own individual pension funds for the future.

Is there such a thing as enough money to retire?

There is no such a thing like enough money to retire, Retirement needs more attention than it has right now. And very one’s perception about retirement depends on how they envision it. while others want to enjoy the old life and travel others focus on their family’s survival and catering for medical bills because of old age. This Totally varies from person to person.

At what stage should someone start saving for retirement?

Immediately one earns income they should start thinking of retirement. this also determines. The dramatic ageing worldwide is projected to be taking pace in low- and middle-income countries like Uganda without adequate formal mechanisms to take of traditional family-based care for the elderly. Therefore, it would be very important to start saving early so that at the point of retirement an individual has substantial amount to care of his/her life after retirement.

Explain the dynamics of Health Care that one ought to plan for during retirement.

Aging is a fact of life which reduces the work performance levels with health risks due to old age. Good Health care totally depends on you and your family members. At that point. One should have a financial muscle to have a smooth process which most Ugandans haven’t taken note of. Retirement funds train you financial discipline which in return helps to manage the old age peacefully.

Insurance companies like UAPOM have medical packages which can be provided individually or even as family packages for a better health planning which have been tested, offered value since they are affordable, unique, and remained relevant covering lives against life threatening conditions related to critical illnesses and other conditions which normally render Ugandans temporarily or sometimes permanently disables or incapacitated. However, UAP OM Life has also offered other saving and investment options (like Somesa Education Plan) for individuals who would like to guarantee continuity of their children’s education and continuity of families in case of unexpected eventualities such as death, critical illnesses, and disabilities.

Is a Retirement Fund meant for investing?

Or is it for, like the story books say, ‘living happily ever after?’ (What is the rule of thumb for old age investing?) A retirement Fund is more of saving and investment for the future. It’s a way of preparing for our old age. And yes, it guarantees a happily ever after life.

What role then does UAP Old Mutual play in the grander scheme of prepping individuals for a successful life and sustainable, satisfactory, and fulfilling retirement.

• UAP OM’s role is to provide comfortable value add solutions for an individual or an organization through the UAP retirement Umbrella Fund.
• UAP OM will invest the contributions and return best interest rates in the market which will help in the growth of an individual’s money
• Financial illiteracy trainings on how best to invest and advise on profitable ventures to enable you enjoy your retirement.

Do taxes apply to Retirement funds, or pension funds in the local setting?

Since the Government of Uganda is encouraging savings there no taxes of the retirement funds. For example, during the retirement benefits scheme operation, the employer contribution (portion) towards retirement benefits of their employees and retirement benefits payable at the time of access are not taxed.