BY: Naa Anyema Collison
A defined regular contribution plan under which a fixed sum of money is invested, and that becomes available at retirement age is pensions.
In this month, as AdoaTv focuses on educating the general public on pensions and the need for them, we ask the question, do traders contribute towards pensions, And how?
The informal sector constitutes 85% of Ghana’s total working force. Out of the 85% only 3%of this population is on one pension scheme or the other. Month to month, the informal worker in Ghana can’t be sure exactly how much money she makes. Her wages depend on the market, the month, and, sometimes the weather.
Despite this daily uncertainty, informal workers in Ghana are often more concerned about how long they will be able to work and being able to afford retirement. However because 85% of Ghanaians are employed in the informal sector, the majority of aging workers have few options for safeguarding their health and well-being in the long term after they can no longer work.
As the old population explodes, the United Nations estimates the number of elderly people in sub-Saharan Africa will triple to 161 million by 2025 old-age poverty is also accelerating at an alarming rate. But is there any potential value of a pension scheme designed for the informal sector? , when people are leaving on irregular wages, how do you convince them to take risks in any investment, particularly when many Ghanaians are still reeling from the National and global financial crisis.
Nana sifa Twum head of Corporate Affairs at the National pension regulatory authority shared with me the authority’s plan to get more players in the informal sector on board.