Dr Evans Dzikum, President, Civil and Local Government Staff Association, Ghana, (CLOGSAG) has advised government workers to plan well for a pension because they will need more resources to live on during retirement.
He said looking at the present pension scheme, the majority of workers would be entitled to only one-quarter of their current incomes during retirement.
He spoke at the launch of the “Pempamsie Fund,” a Three-Tier contribution by CLOGSAG, on the slogan: “Money Pickin Grow Pass Money Mother”.
He told workers that “now was the time to save into the Fund to secure the future and have a better pension life.”
He said the deskbound lifestyle exposed workers to various diseases which demanded constant care and management during pension, adding that family responsibilities also needed equal attention.
He said pensioners found themselves saddled with extra expenditures which could make their life in pension poorer.
“The extra expenditure on health issues and family matters are enough to send one to desperation or to his early grave,” he said.
He said to achieve a sustainable pension income, one would have to begin preparations well ahead of time bit by bit.
“The little monies you put aside and invest continuously would become your saviour,” he said.
Professor Emmanuel O. Asiamah, Chief Executive Officer, Hedge Pension Trust, said the Three-Tier introduced by the National Pensions Act, 2008 (Act 766) provided workers with the opportunity to invest by making a monthly contribution of part of their income into the “Pempamsie Fund” over ten years to make pension enjoyable.
He said if one contributed to the fund which was managed by the Hedge Pension Trust, for example, a monthly contribution of GHS 300, could fetch the worker ten years GHS 61,727 or more.
He said the minimum age of entry was 15 years and a contributor could contribute to the voluntary fund for 10 years.
He said contributors could enjoy a lower tax deduction as provided by law and one could contribute all 16.5 per cent or part of available funds on basic salary.
Mr Isaac Bampoe Addo, General Secretary CLOGSAG, explaining the slogan, “Money Pickin Grow Pass Money Mother,” said the total sum of the contributions over a given period was termed as the “Money Mother.” The earnings over the investment which is “Money Pikin” would with time far outstrip the total contributions, he said.
He urged all Government workers to contribute to the fund to have a better life in retirement.