Mr. Hayford Attah Krufi, Chief Executive Officer (CEO) of the National Pensions Regulatory Authority (NPRA) has expressed that Micro Pensions best fits the needs of persons within the informal sector in the Ghanaian economy.

According to the NPRA’s boss, the African economy, which is primarily dominated by the informal sector, has the potential to succeed through personal pensions, small scale pensions, as well as group personal pension schemes among others.

“We in Ghana, especially with the informality of the nature of how we work, the best way to approach pensions is through associations, cooperatives, unions and individual.”
Mr. Hayford Attah Krufi

Mr. Attah Krufi citing similar successful stories within the African continent made mention of economies such as Nigeria, Kenya and Uganda which are progressing in the micro pension sector.

The Chief Executive Officer made this known during the National Pensions Awareness Week in Kumasi.

As disclosed by Mr. Attah Krufi, natural phenomenon like old age, and situations like poverty, especially, among the informal sector continues to increase.

This, the NPRA’s boss disclosed, prompts the need to wipe out the narrative, adding that the informal sector constitutes about 85 per cent of the population.

Mr. Krufi further noted that the NPRA is currently working hard to raise informal pensions from a low level of three per cent penetration to 40 per cent penetration in the next five (5) years.

The pensions awareness week

The Awareness week is targeted at deepening education and enlightening Ghanaians on the tier-three pensions in relation to the informal sector within the Ghanaian economy.

The week-long event is also aimed at bridging the knowledge gap among some key stakeholders to improve participation in pensions and retirement planning.

The event targetes associations of traders, drivers, tailors and dressmakers, hairdressers and beauticians, vulcanizers, woodworkers and the Trades Union Congress (TUC).

Mr. Ignatius Baffour-Awuah, Minister for Employment and Labour Relations, said pension schemes has become necessary in the development of Ghana.

This, Minister for Employment revealed, inspired the need for the President Nana Addo Dakwa Akufo-Addo to recently inaugurate the Cocoa Farmers’ Pension Scheme.

“The best form of pension is to set aside part of your income in your prime age for it to be invested for your old age.
“Now that you have strength and can harvest 10 bags, 15 bags and 20 bags of cocoa that can fetch you income, you should realize that no condition is permanent.”
Mr. Ignatius Baffour-Awuah

Mr. Baffour-Awuah also debunked the notion that pension plans are only for workers in the formal sector and further explained that an individual must not be a salary worker before deciding to enrol on pension schemes.

Also, the Minister for Employment and Labour Relations implored employees to demand information about their contributions towards pensions.

Mr. Baffour-Awuah speaking on the informal sector said, “statistics have revealed we have about 85 per cent of the working populace in the informal sector and currently we have only three (3) per cent of them on a pension scheme”.

This, he disclosed, is not the best and hence there was the need for persons within the informal sector to be on pension to provide income security for them for their old age.