The National Pensions Regulatory Authority (NPRA) has called on informal sector workers in Ghana to enrol in the Tier-3 pension scheme. This initiative aims to provide financial security for individuals after their active working years. The NPRA is intensifying its public education efforts across the country to achieve this goal.
This push comes as approximately 85% of Ghana's national labour force operates within the informal sector. These workers often lack the structured social security benefits enjoyed by formal sector employees. The Tier-3 scheme offers a flexible and protected avenue for them to save for retirement. This addresses a critical gap in Ghana's social protection framework.
The NPRA's campaign fits into Ghana's broader economic strategy to enhance financial inclusion and social protection. Many informal workers continue working past the standard retirement age of 60 due to financial necessity. Ensuring their future financial stability reduces poverty among the elderly. It also supports economic resilience for a significant portion of the population. Data shows that informal sector workers make up three out of every four workers in Ghana. This highlights the scale of the challenge and the potential impact of successful enrolment.
Efua Appiah-Gyimah, Principal Manager for Corporate Affairs at NPRA, Accra, explained the scheme's design. She stated, “The third tier was specifically designed for the informal sector.” Madam Appiah-Gyimah noted that traders, artisans, commercial drivers, and farmers can contribute any amount at their convenience. Contributions can be made weekly, monthly, or quarterly, aligning with their business returns. She assured that the scheme is fully protected and monitored by the NPRA. This oversight involves licensed trustees, custodian banks, and fund managers.
Rosina Akrofi, Manager in charge of Education and Sensitisation at NPRA, Accra, underscored the urgency. She revealed that 85% of the national labour force works informally. Yet, the vast majority remain uncovered by any structured social security mechanism. Madam Akrofi emphasised, “Our message is simple: you can also have a pension as an informal sector worker.” She encouraged individuals and trade groups to register. This ensures financial support when physical strength diminishes.
Mohammed Abdul-Moomin, Upper West Regional Director of the Ghana Enterprises Agency (GEA), also weighed in. He urged business owners to view pension planning as an essential business survival tool. Mr. Abdul-Moomin stated, “Pension is inevitable.” He highlighted that active regular income diminishes with age, even with long life and good health. A pension provides the necessary financial cushion during non-productive years. The GEA commits to integrating pension education into its entrepreneurship training. This partnership strengthens the outreach to micro, small, and medium-sized enterprises (MSMEs).
The NPRA's intensified public education drive includes events like the “Pensions Caravan” and “Pensions on Wheels.” These initiatives engage communities directly, such as through a recent dialogue in Wa. The establishment of regional offices, like the one in Wa, decentralises pension administration. This brings regulatory services closer to workers. This strategic decentralisation is crucial for reaching diverse informal sector groups. It ensures they receive direct guidance and support for registration.
The successful enrolment of informal sector workers into the Tier-3 scheme will have significant implications. It will reduce the burden on families and public social safety nets in the long term. It also promotes a culture of savings and financial planning among a demographic often overlooked. Decision-makers will monitor enrolment rates closely. Increased participation could lead to greater financial stability for millions of Ghanaians. This would bolster the nation's overall economic resilience. The NPRA's sustained efforts are vital for securing a dignified retirement for all Ghanaian workers.