Accra-Ghana, Oct. 2, GNA – Nana Sifa Twum, the Head of Corporate Affairs, National Pension Regulatory Authority (NPRA), says the informal sector faces pension penetration challenges because pensions in Ghana were set up on a wrong premise with the notion that only formal workers can benefit.
“This is why we have about nine million people working in the country who are not on pension schemes,” he said.
He indicated that over the next five to 10 years, many people would retire into poverty if the challenges were not resolved.
Nana Twum was speaking in an interview with the Ghana News Agency at the launch of the Pension Sunday at the Ebenezer Presbyterian Church at Osu in Accra.
The NPRA, in collaboration with the Presbyterian Church of Ghana (PCG), has instituted the Pensions Sunday to educate church members to improve pension literacy and enhance coverage in the country.
The first Sunday of every October will be observed in all the 5000 Presbyterian congregations across the country as Pensions Sunday to create awareness among members and non-members alike to understand, appreciate and participate in contributing to pensions schemes.
It is estimated that about 85 per cent of the working population in Ghana is found in the information sector, which paints a very gloomy picture of the Ghanaian working force.
Out of that figure, there was less than one per cent on pension schemes, but the NPRA had worked hard to bring about seven per cent of them onto the schemes currently, Nana Twum said.
“Many pragmatic programmes have been put in place by the Authority to raise the figure to about 25 per cent in the next five years,” he noted.
“The consequences would be dire for the entire nation if nothing is done about it. We need to avoid that and this is why the collaboration with the Presbyterian Church is deemed by the Authority as crucial.”
He said the situation had created huge misunderstanding among the populace but, fortunately, the NPRA had started correcting that error by encouraging Ghanaians to accept pensions as part of human life.
“There are two inevitable things in live, one would have to retire or die, and these require pragmatic preparations,” he added.
The 2010 National Pensions Reforms have provide the NPRA the mandate to help increase pension literacy and coverage in the country.
Nana Twum noted that many old people tried to keep their souls young but they still become quivering for obvious reasons.
“Rightly so, nature cannot be cheated as the saying goes. If there are no preparations towards old age and retirement for that matter, old age becomes like a nuisance than the blessings God wants it to be.”
He announced that the Authority was working towards replicating Pensions Sunday in all churches.
The NPRA has put in place plans to enable pension schemes to provide guaranteed monthly income for life to all workers, both in the formal and informal sectors, which makes financial security in retirement much more achievable for those who have them.
Right Reverend Professor J.O.Y Mante, the Moderator of the General Assembly, PCG, who launched the programme, expresses optimism that it would enhance awareness among Ghanaians, especially members of the Presbyterian Church of Ghana, to whip up enthusiasm to plan for their retirement.
The bible requires Christians to live in dignity and be financially sound, therefore, the programme would ensure people prepared well towards their retirement, he said.
Rt Rev Mante explained that the Church worked towards the holistic wellbeing of its members “and as members are fed with the spiritual information and assistance, they must also be well educated to live lives that are of high repute and dignity.”
He called on the leadership of the Church to liaise with the NPRA in the regions to promote the programme to make it effective and successful.
The Moderator appealed to the Government to institute October, every year, as a pension month to create awareness on pension and related matters.
“Pension helps one to maintain his or her standard of living in retirement, and savings provides important supplemental income for unforeseen expenses”.
