Improving coverage of retirement benefits schemes in Uganda, a study of the informal sector in Kampala central division

Abstract

The purpose of the study was to examine improving coverage of retirement benefits schemes in Uganda basing on evidence from the informal sector in Kampala Central Division. The study motivation was that 85 percent of Uganda’s young non-salaried informal sector workers were still excluded from formal pension and social protection arrangements making them vulnerable to both lifecycle risks and extended poverty in old age. This created the need to explain this using the study objectives namely; to examine the validity of the current retirement benefits schemes in attracting and retaining membership in Uganda; to explore the challenges in attracting and retaining people in retirement benefits schemes in Uganda; to recommend strategies to improve effective coverage of retirement benefits schemes in Uganda. The study population comprised of 1,501 respondents and the sample was 100 respondents. Primary data was obtained using questionnaires. The results revealed good dynamism but with gaps related to trust and pay out inefficiencies. Lack of predetermined income or monthly income or irregular and information gaps were identified as the strongest challenges. Highly supported strategies included; more customized sensitization, reducing administrative bureaucracies and digital payments. The study concludes that RBS that have mastered the art of designing processes and procedures fitting beneficiary needs and convenience can easily onboard and retain members. The strategies to improve perception on RBS, uptake, retention, grow membership among others, call for a multi-stakeholder and multi-disciplinary approach. The study recommends sharing all relevant information with stakeholders to improve trust and create a positive perception towards the RBS, the process of benefits payment to be well stipulated, shortened and easy to follow and use. The informal sector should be given adequate information by the RBS staff and management and make arrangements for contribution remittances and benefits payment through digital platforms such as mobile money.