Only six percent of all Rwandans subscribe to the Social Security Fund of Rwanda (SSFR), the Lower Chamber of Parliament was told this week.
Vincent Karega, the State Minister for Minerals and Natural Resources, who was in parliament as a government emissary, in a consultative meeting with the lawmakers about the ongoing reforms within SSFR said government is considering putting in place a ‘Provident Fund’.
According to Karega, the fund will help Rwandans save for long term investments like housing and tuition and will also boost their pensions.
When one looks back, especially in the African setting, the family guaranteed the social security of the individual member. Today, the dynamics of the family and its structure have changedm, for valid reasons.
Modern social security cover mainly caters for those employed in the formal sector where the employer pays a certain percentage to top up the individual employee’s contribution.
Hopefully, the Provident Fund will cater for even those that might not necessarily be in the formal sector.
SSFR should ensure that people understand everything concerning their pensions and any new policies they might introduce. It should also ensure that all employers remit employees’ contributions consistently and on time.
Rwandan financial institutions should seriously consider a wide range of retirement programs that would suit the financial needs of their aging customers, as is done elsewhere.