When the long- awaited Annual Members Meeting of the National Social Security Fund opened on Monday morning, the question uppermost on everyone\u2019s mind was what interest on savings was to be announced.<\/p>\n\n\n\n
It was the Fund\u2019s first AMM to be conducted wholly online, guaranteeing maximum attendance by millions of members and non-members watching and participating in the virtual space. Finally, Finance minister Matia Kasaija took the floor.<\/p>\n\n\n\n
Given the economic downturn in virtually all the sectors, many expected a 7% declaration at best, but 5% wouldn\u2019t have elicited many protests either, given the current situation. Then Kasaija dropped the bombshell – 10.75%!<\/p>\n\n\n\n
While Kasaija\u2019s bombshell was greeted by jubilation by the million plus NSSF members, it drove a hard nail in the coffin of the campaign that started with the covid-19 lockdown to have 20% of members\u2019 benefits paid out as relief. For it is more than half of the 20% that savers would have taken out of their retirement aga package had the payout been effected.<\/p>\n\n\n\n
This is not to count the lost compound interest for all the years to come. In case of savers in say, their thirties, they would have lost several times much more that whatever the 20% equals to in their individual accounts.Quite a sobering effect, the announcement had.<\/p>\n\n\n\n
Actually, agitation for the 20% payout was not all that necessary in the first place because the government took a quick step to \u2018forgive\u2019 or defer contributions for three months. This was not a small step considering that the contributions are an obligation on employers and employees. That in itself was a relief and well, the total lockdown lasted just that long.<\/p>\n\n\n\n
But even people who stopped earning did not die of hunger, as the fascinating stories we saw on TV and continue reading in the newspapers indicate. People like private school teachers for example thought outside the box and some have struck gold in farming and others in brick making. In fact, the worried people now are proprietors of schools who know for certain that not all teachers will not return to work \u2013 not after tasting money much bigger than their teaching salaries once they accept to roll up their sleaves and touch the soil \u2013 Uganda\u2019s fertile soil.<\/p>\n\n\n\n
After being hit by MD Byarugaba\u2019s golden punch, withdrawal of 20% before full term is not likely to appeal to (m)any NSSF members. One would have to weigh the loss to be made by eating a fifth of your nest eggs today when you are still strong instead of letting them earn compound interest to enjoy when you retire.<\/p>\n\n\n\n
Actually, many people have already learnt the secret although they are not shouting about it. Statistics from NSSF indicate that 3.2% of the members already qualified to take their savings after attaining the age of 55 years. But they are staying put! For every year they stay in NSSF, their nest egg grows by 10%.<\/p>\n\n\n\n
Result?<\/strong><\/strong><\/p>\n\n\n\n A whopping 256 billion shillings in NSSF belongs to guys (and \u2018chicks\u2019) aged 55 \u2013 60 years. And another 104 billion shillings belongs to fellows over 60 years of age. They have discovered the secret of compound interest and like a certain leader said, they aren\u2019t going anywhere soon.<\/p>\n","protected":false},"excerpt":{"rendered":" When the long- awaited Annual Members Meeting of the National Social Security Fund opened on Monday morning, the question uppermost<\/p>\n","protected":false},"author":1,"featured_media":1969,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[24,90],"tags":[],"class_list":["post-1965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economy"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/09\/hh-1.jpg","jetpack-related-posts":[{"id":4149,"url":"https:\/\/prowebinhost.com\/anzu\/nssf-declares-12-15-interest-payment-for-its-members\/","url_meta":{"origin":1965,"position":0},"title":"NSSF declares 12.15% interest payment for its members","author":"UgandaUpdate","date":"September 30, 2021","format":false,"excerpt":"By Our Business Reporter The National Social Security Fund (NSSF) has announced 12.15 percent interest payment to its members for the Financial Year 2020\/21. The interest which was welcomed by members as a good return on their savings given the covid -19 pandemic was announcement by Finance Minister Matia Kasaija\u2026","rel":"","context":"In "Business"","block_context":{"text":"Business","link":"https:\/\/prowebinhost.com\/anzu\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/09\/latest001pix-data.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/09\/latest001pix-data.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/09\/latest001pix-data.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/09\/latest001pix-data.jpg 2x"},"classes":[]},{"id":12884,"url":"https:\/\/prowebinhost.com\/anzu\/savers-disappointed-as-nssf-announces-only-11-5-interest-rate-for-financial-year-2023-2024\/","url_meta":{"origin":1965,"position":1},"title":"NSSF Savers Disappointed As Fund Announces Only 11.5% Interest Rate for Financial Year 2023\/2024","author":"UgandaUpdate","date":"September 26, 2024","format":false,"excerpt":"Savers are disappointed that the National Social Security Fund (NSSF) after declaring a ug.Shs.2.5 trillion revenue collection, the fund has only offered a 11.5% interest rate for members for the financial year 2023\/2024. The announcement was made during the NSSF's 12th Annual Members Meeting held on 26th September 2024. Financial\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2024\/09\/NSSF.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2024\/09\/NSSF.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2024\/09\/NSSF.jpg 1.5x"},"classes":[]},{"id":10001,"url":"https:\/\/prowebinhost.com\/anzu\/after-a-protracted-leadership-row-ugandas-nssf-declares-10-interest-for-its-members\/","url_meta":{"origin":1965,"position":2},"title":"After a protracted leadership row, Uganda\u2019s NSSF declares 10% interest for its members","author":"UgandaUpdate","date":"September 26, 2023","format":false,"excerpt":"After a protracted leadership row Uganda\u2019s \u00a0National Social Security Fund (NSSF) has \u00a0declared 10% interest rate for its \u00a0members for the financial year 2022\/23. The 10% payment accounts for \u00a0UG.Shs. 1.591 trillion . The earned interest will be credited on each members account this week . Finance Minister Matia Kasaija,\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/09\/nssf-rate-2023.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/09\/nssf-rate-2023.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/09\/nssf-rate-2023.jpg 1.5x"},"classes":[]},{"id":8408,"url":"https:\/\/prowebinhost.com\/anzu\/members-of-parliament-call-for-resignation-of-labour-minister-amongi-ask-govt-to-recover-stolen-nssf-funds-from-top-managers\/","url_meta":{"origin":1965,"position":3},"title":"MEMBERS OF PARLIAMENT CALL FOR RESIGNATION OF \u00a0LABOUR MINISTER AMONGI , ASK GOVT TO RECOVER STOLEN NSSF FUNDS FROM TOP MANAGERS","author":"UgandaUpdate","date":"March 7, 2023","format":false,"excerpt":"By Our Parliament Reporters In a heated debated this afternoon Members of Parliament have called for the immediate resignation of Labour and Gender Minister Betty Amongi for exerting political pressure on the management of the NSSF to take out Ug.Shs. 6bn . 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