KAMPALA —For Lukiiya Nalwadda, retirement was always a looming concern. As a former secretary at the main library of Makerere University, she had worked tirelessly for 40 years, but she was always worried about what would happen when she retired.
She had a large family to take care of, including her husband who had been ill for some time and needed constant medical attention. With no guaranteed source of income after retirement, Lukiiya’s future was uncertain.
Despite her worries, Lukiiya had managed to accumulate a large sum of savings over the years. However, she was unsure about where to invest her money. With little knowledge of the financial markets, she was hesitant to make any investments that could potentially lead to losses.
Lukiiya is not alone in her situation. Every year, hundreds of Ugandans reach retirement age without a monthly source of income after leaving their jobs. Many, like Lukiiya, are unsure about how to make the most of their savings and plan for their financial future.
According to a report by the National Social Security Fund (NSSF) in Uganda 2022, only 20% of the working population is covered by a pension scheme, leaving the majority vulnerable to financial insecurity in their later years. For those who do have pensions, the average payout is just 30% of their pre-retirement income. This is a worrying trend that can be attributed to the decline in traditional pension plans, longer life expectancy and inadequate savings.
Thankfully, there are now options available to help people like Lukiiya plan for retirement; one of which is the ICEA Annuity plan that provides a guaranteed income for life. An annuity plan is an insurance product that provides a guaranteed income stream for a specified period or the rest of one’s life. In Uganda, annuity plans are becoming increasingly popular among people who want to secure their financial future in retirement. According to the Insurance Regulatory Authority of Uganda, the total gross written premium for life annuity policies increased by 27.4% in 2021.
The ICEA annuity plan is an attractive option for those looking for financial security in retirement, as it eliminates the risk of outliving one’s savings or facing financial uncertainty due to market fluctuations. It is customizable, allowing retirees to choose the level of income they need and the frequency of payouts. This flexibility makes the plan suitable for a wide range of retirees, from those who want a modest income supplement to those who need a more substantial income stream to maintain their standard of living.
The ICEA Annuity Plan is backed by ICEA LION Uganda, one of the strongest and most stable insurance company. The company has a long history of providing insurance and financial products to individuals and businesses in East Africa and has earned a reputation for financial strength and stability.
“The Annuity Plan is intended to transform the usual culture of people retiring and getting lump sums of money to invest it without experience, which leads to loss of these savings. The ICEA annuity plan means that money is mobilized and invested by professionals who assure the retiree of a guaranteed sum in constant payments” Ibrahim Kadunabi Lubega, CEO, Insurance Regulatory Authority
“We are well aware that the annuity plan is fairly new in this market and may not be something the public is familiar with; the market has been about life insurance and general insurance. However, the ICEA Annuity Plan is tax-free and ensures that one can enjoy their retirement income to the fullest and not live like a destitute; the product is guaranteed for life” Andrew Otongo Owiny, Managing Director, ICEA Lion Uganda.
It is essential to note that the benefits of annuity plans vary depending on the type, duration, and other factors. However, with the right annuity plan, retirees can secure their financial future and enjoy peace of mind.
