Less than 6% of Rwanda’s workforce, largely public and private sector salaried employees, are covered by the mandatory Defined Benefit (DB) pension program administered by the Rwanda Social Security Board (RSSB). The remaining population (some 5.4 million non-salaried workers) are excluded from formal pension and social security arrangements. The majority of them are less than 35 years old and roughly 80% of them are farmers.
As a result of this market failure and in line with its stated priorities for financial inclusion, poverty alleviation, comprehensive social security coverage as well as financial sector development, the Government of Rwanda with support from Access to Finance Rwanda has decided to launch a fully funded Long-Term Saving Scheme (LTSS) in the coming 3 years. This scheme will provide every Rwandan citizen (including self-employed non-salaried workers, as well as public and private sector salaried employees) an equal right and opportunity to achieve a financially secure and dignified retirement. 375,000 pension accounts will be registered as a result.