Officials believe that the decision to allow savers to access their 20% of their savings was not right because it greatly affected the UBRA performance.
Uganda Retirement Benefits Regulatory Authority (URBRA) has said that the annual performance of the pension sector was heavily impacted by the 20% mid-term access to retirement benefits and this could have been sidestepped.
A total of Shs 441 billion was distributed to pensioners under the window, thus affecting the growth of the total assets under management, which only grew to Shs 20.5 trillion against the Shs 21 trillion expected in 2022.
The chief executive officer UBRA, Martin Nsubuga told the Nile Post that there was that fear that people's money was not safe, adding some members actually wanted to prove that their savings existed at the Fund.
"There was that fear that people's money was not safe. People were able to access their money to confirm that their money was safe. For us as regulators we always know that the money is there, well invested and we can follow it up, but of course some had their doubts here and there," he said.
Officials believe that the decision to allow savers to access their 20% of their savings was not right because it greatly affected the UBRA performance.
He explained that many members got 5% instead of the 20% to see if the new access initiative works, adding that they are working on a policy initiative to preserve member's funds, like products.
Nsubuga unveiled a new strategy to revitalize the sector's performance and increase the percentage of Ugandans saving for retirement.
"We need to reach out to the uncovered population, this is very critical. We are working on the plan that we want to push forward which we think can be able to secure a number of issues. We think we are likely to come up with the solution to address the uncovered population," he said.
Chief executive officer UBRA, Martin Nsubuga (Middle) and other officials
The Director Research and Strategy Benjamin Mukiibi, at URBRA said they want to make the preposition for values which start with looking at the savings.
"We have come up with a proposal which is tailored to those workers in the informal sector, those that don't have a definite salary. How do we get to these people? First, it will be a normal contribution and this can be done by the use of technology, "he said.
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He noted that they have already examined the literacy for technology, adding there is need for government support.
Joan Mugenzi, a Transformational Master Coach and Founder of Imagine Me Africa, encourages Ugandans to embrace the culture of saving, noting that many people always recklessly spend money they receive unplanned.
Uganda is one of the countries with the lowest savings culture in the world.
According to the Uganda Bureau of Statistics, only 12% of Ugandans have bank accounts while Bank of Uganda research shows that just about 3 to 5% of Ugandans regularly save.
The low saving culture has been a key driver in perpetuating poverty due to the fact that few Ugandans have the capital to start or promote their businesses.
