NPRA pushes informal sector workers to prioritise long-term financial security

Rosina Akrofi, Education and Sensitisation Expert at the National Pensions Regulatory Authority (NPRA), has issued a strong appeal to workers in Ghana’s informal sector, urging them to secure their future through pension schemes.

Speaking at an outreach programme dubbed “Pension on Wheels” at the Kumasi Cultural Centre, she noted that about 85% of Ghana’s workforce operates in the informal sector and are therefore highly vulnerable in old age.

“We need to ensure that the 85% in the informal sector are part of pension schemes. Their future depends on it. Relying solely on your children for support in old age is no longer a sustainable plan, as economic realities are changing,” she said.

According to her, the NPRA’s broader objective is to ensure that all working Ghanaians, regardless of employment status, have access to adequate retirement income security.

She explained that the engagement was aimed at demystifying pensions for informal workers such as tailors, farmers, traders, and small business owners, and encouraging them to actively plan for retirement.

“The focus is on the third tier pension scheme, a voluntary personal or group pension plan designed specifically for the informal sector. Unlike the mandatory first and second tiers, which are mainly for formal employees, the third tier offers a flexible solution for those who manage their own income,” she said.

Akrofi highlighted the benefits of the third tier scheme, noting that there is no age limit for contributors and that payments can be made daily, weekly, monthly, or yearly depending on income flow.

She further explained that the scheme has a dual-account structure, consisting of a retirement account and a savings account. Contributions in the retirement account are used to purchase an annuity from insurance companies, providing a regular pension income after retirement.

The savings component, she noted, allows members to access funds at any time for business investment, personal projects, or emergencies, offering both long-term security and short-term flexibility.

“This scheme is not stressful; it is flexible and convenient. It is a must for every informal sector worker because tomorrow you will enjoy a better retirement,” she said.

The sensitisation programme was well attended by market women, tailors, and small business owners. Some participants told reporters they had gained a clearer understanding of pension enrolment and the importance of securing their future.