Ghana’s pensions regulator is working to ensure about 11m informal sector workers have pension schemes

The Chief Executive Officer (CEO) of the Authority, Hayford Atta Krufi said that the more than 10 million workers in the informal sector must have a pension scheme which they will benefit from in their old age.

The current three-tier pension system does not favour the informal sector because most workers do not have a regular source of income like monthly salaries. This is a major factor that prevents many people in the informal sector from contributing to a pension scheme.

Thus, workers in the informal sector and their respective households are always in danger of not saving towards pensions throughout their productive lives.

In an interview with Accra-based Citi FM, Mr Krufi said the NPRA is currently developing a pension scheme for cocoa farmers which will be replicated for other identifiable occupational groups in the informal sector.

“About 11 million people who work in the informal sector are not on any pension scheme and out of that number 5 million are farmers and fishermen. The NPRA with support from the World Bank is finalizing processes for the completion of a pension scheme for cocoa farmers. After its full implementation, the same will be done for other associations such as traders, spare part dealers and so on.”

Initiatives such as micro pensions will allow informal sector workers to access pension schemes where they can make their contributions via mobile money among other benefits.

Mr. Atta Krufi went on to acknowledge the efforts of some companies providing micro-pension schemes and assured of their strict regulation.

“In Ghana, there are 261 occupational pension schemes which are strictly monitored and managed by 11 banks which serve as custodians. I can assure people out there that their pensions will be kept safe because they are safely invested,” the CEO said.