The 2019 report of the National Pensions Regulatory Authority (NPRA) has put out some stark statistics which have to be looked into to be addressed appropriately.
The report notes that as many as 7.7 million working Ghanaians, representing 70% of the country’s over 11 million active labour force, are non-active pension contributors. The informal sector’s situation is dire, with coverage pegged at a low 3% – which is in spite of the fact that the sector accounts for 7.9 million of the total active workforce. Hence, it means the various pensions schemes must of necessity increase their public education to reach out more to the active labour force.
A labour consultant, Kwame Boateng, says a majority of the country’s active labour force, together with their dependents, are most likely to suffer from poverty, poor health and deprivation when they retire. He described the situation wherein 70 percent of the active workforce is not contributing toward retirement as a serious crisis.
Hence, it means the various pensions schemes must of necessity increase their public education to reach out to more the active labour force. The education should be particularly targetted at the informal sector, since coverage there is extremely low.
We believe that with innovative and tailor-made pension products, workers would be convinced of the importance of contributing to pension schemes so that in retirement they can fall on such monies to get by.
Since, 2010, the country has been implementing a three-tier pension scheme under the national Pensions Act, Act 766. Hence, there is space to capture every active worker, be they in the formal or informal sector.
We believe the NPRA can lead this education drive, since it is the regulatory body for pensions in the country, by engaging professional bodies and holding educational fora to spread the benefits associated with contributing to pension schemes.