Practices of retirement savings in the informal sector: a case study of Wandegeya market
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The objective of this study was to examine the factors that contribute to the mode of saving done in the informal sector. Primary data was obtained from respondents in Wandegeya market. This quantitative cross-sectional study involved distribution of 109 sets of questionnaires to respondents who were self-employed and informal sector workers in Wandegeya market. Univariate analysis, cross tabulations and multi nominal logistic regression were performed on the variables in the study using STATA. In the univariate analysis, slightly more than half of the respondents (58.82%) were females, Majority of the respondents were married (41.18%), followed by the single people (34.31), cohabiting (14.71%), and the widowed and separated who had the same percentage of (4.90%) Most of the respondents used Banks, Bonds and Retirement schemes (37.25%)as methods of saving, this was followed by those who used multiple modes of saving (29.41%), None of the options (24.51%), this was followed by those who used Land, Other relatives, Inheritance and Children (8.82%). In the bivariate analysis there was relative significant relationships between mode of saving and marital status, age, gender, level of education, sources of information, worried about income of old age and having any family member who is saving. In the multi variate analysis, mode of saving was directly influenced by sex (RRR=0.0974) and respondents family member’s modes of saving (RRR=12.20794). There is need for sensitization and education of masses on various aspects within the retirement benefits sector, and this knowledge will instill some confidence within Ugandans so that they can save for their retirement in the available schemes and financial institutions. On top of incentives for this young sector, the government should look into the Retirement Benefits Sector Appeals Tribunal and the Liberalization Bill, which will bring about transparency and competition in the sector respectively. URBRA should encourage and license more retirement schemes for the informal sector on top of Mazima retirement plan and Kacita.