Smartlife Flexi: Empowering Savers to Take Charge of Their Financial Future
Thursday, February 6 2025 2:00 pm
By Julius Businge - Financial Journalist Follow on LinkedIn
November 20, 2024, will stand as a historic milestone for Uganda’s National Social Security Fund (NSSF) and its members. On this day, NSSF officially unveiled the Smartlife Savings Plan, a voluntary savings product designed to revolutionize social security coverage.
This innovative solution is tailored to cater to existing NSSF members, individuals in the formal and informal sectors, and Ugandans in the diaspora, empowering them to manage their saving plans with greater flexibility and purpose.
NSSF Uganda, a multi-trillion-shilling fund mandated under the NSSF Act (Cap 230), serves as the bedrock of social security for eligible employees nationwide.
The Fund’s reputation as a secure, innovative, and dynamic institution is backed by its commitment to safeguarding members’ savings and delivering returns that exceed Uganda’s 10-year inflation average by at least 2%. This assurance underscores the confidence members can have in products like the newly launched Smartlife Savings Plan.
The introduction of Smartlife Flexi follows the publication of the National Social Security Fund (Voluntary Contributions and Benefits) Regulations, 2024, by the Minister of Gender, Labour and Social Development, Hon. Betty Amongi, on November 8, 2024.
This regulatory framework paved the way for the NSSF Board to introduce products that address the diverse needs of savers and expand the reach of social security in Uganda.
Member-driven product
According to Patrick Ayota, Managing Director of NSSF, the Smartlife Voluntary Savings Plan is a product born out of rigorous research and a deep understanding of members’ needs.
“In 2021, we conducted the NSSF Members Needs Research to guide the development of new products. The findings revealed that 60% of our members felt they were not saving enough and desired more voluntary options. Additionally, members expressed a need for savings solutions that address retirement planning, education, health, and capital accumulation for business ventures,” Ayota explained.
Smartlife Flexi is designed to address these needs with unparalleled flexibility. Members can set mid-to long-term savings goals, determine their contribution frequency, and select timelines that suit their objectives.
The product’s minimum contribution of UGX 5,000 makes it accessible to a wide audience, and returns are computed on a daily balance but credited monthly.
While the minimum lock-in period is one-year, early withdrawal options are available with minimal costs, ensuring members can adapt their plans as needed.
Expanding coverage
The launch of Smartlife Flexi is a cornerstone of NSSF’s broader strategy to increase social security coverage to at least 50% of Uganda’s working population by 2035.
Currently, NSSF serves about 2.3 million members, predominantly from the formal sector.
However, the informal sector, which constitutes a significant portion of Uganda’s workforce and GDP contributors, remains largely excluded from traditional social security systems.
Smartlife Flexi aims to bridge this gap by targeting underserved workers and offering them an inclusive, accessible savings platform.
For NSSF, the product’s benefits extend beyond individual savers.
By broadening its member base and increasing voluntary contributions, the Fund’s assets under management (AUM) are set to grow significantly.
Currently valued at over UGX 23.5 trillion and invested across fixed income, equities, and real estate in East Africa, these assets form the backbone of NSSF’s ambitious Vision 2035.
This vision aims to grow the Fund’s assets to at least UGX 50 trillion, achieve a 95%-member satisfaction rate, and expand coverage to half of Uganda’s workforce.
Inclusive savings
Smartlife Flexi is open to all Ugandans aged 16 and above, including those in the diaspora, provided they have a National Identification Number. Non-Ugandans living and working in Uganda with valid passports and refugees with proper identification are also eligible to sign up. This inclusive approach ensures that the product caters to a diverse audience, empowering individuals to save for specific goals over defined periods while retaining complete control over their contributions.
Dr. David Ogong, Chairman of the NSSF Board, lauded the government for enabling NSSF to develop innovative products like Smartlife Flexi. He emphasized that the product’s flexibility and competitive returns reflect NSSF’s proven track record in safeguarding members’ savings and ensuring long-term financial stability.
“We encourage all Ugandans to embrace this opportunity to secure their future through a trusted and reliable partner,” Dr. Ogong said.
Stakeholder support
The product’s introduction has been met with widespread support from organized groups. Dr. Thadeus Musoke, Chairman of the Kampala City Traders Association (KACITA), commended NSSF for its forward-thinking approach.
“Smartlife Flexi empowers workers to take control of their finances. Through our partnership with NSSF, we will champion this innovation to bring value to the trading community, enabling traders to build capital through consistent saving and avoid costly credit,” Musoke said.
This sentiment aligns with global best practices. Studies conducted by PwC on the UK’s National Employment Savings Trust (NEST) between 2015 and 2020 highlighted the transformative impact of flexible, user-centric savings products.
NEST’s innovative approach, including digital tools and behavioral economics, drove membership to over 10 million, enhanced contribution rates, and significantly improved member engagement.
Similarly, a 2020 study by the International Labour Organization (ILO) and the UN Capital Development Fund (UNCDF) underscored the potential of mobile-based micro-pension schemes in Asia and Africa.
Platforms like M-Pension in Kenya and MicroPension in India reached over 2 million low-income workers, demonstrating scalability and achieving annual contribution growth rates of 20%.
Future resilient growth
The NSSF Smartlife Savings Plan stands as a testament to the Fund’s unwavering commitment to empowering Ugandans to take charge of their financial futures. By offering unparalleled flexibility, accessibility, and competitive returns, the product fosters a culture of proactive financial planning and ensures its members’ long-term security and peace of mind. NSSF’s dedication to good governance and prudent management has consistently delivered safety for members’ funds while driving robust returns and asset growth. With Smartlife Flexi, the Fund is not only expanding its reach but also strengthening its role as a cornerstone of financial resilience and self-reliance for Uganda’s workforce.
As NSSF continues to innovate and grow, it invites all Ugandans to join this journey toward a stable and secure financial future. Save smart with NSSF Smartlife Flexi and unlock the power to secure your tomorrow.
To sign up for Smartlife Flexi, follow this link and start your savings journey: https://nssfgo.app/landing
