Celebration Of First-Ever National Pensions Awareness Week & Effects On The Informal Sector Worker

Celebration Of First-Ever National Pensions Awareness Week In Ghana & Effects On The Informal Sector Worker

By Nana Sifa Twum, a Media & Communications Consultant

As part of its mandate, the National Pensions Authority has been actively engaged in education and sensitization on all pension-related matters in the country over the past ten years. Data available indicate that pension coverage in the country is still low. Despite enormous efforts by the Authority to whip up interest among the Ghanaian working people especially those in the informal sector, to register on pension schemes, the Authority believes there is more to be done to raise awareness on pensions in the country.It is estimated that about 85% of the working population in the country is found in the informal sector. The need for these workers to be on pension schemes has been a primary concern to the Authority. This needs to be done to reduce poverty and other old age and retirement challenges ahead of the Ghanaian worker within the coming years. Introduction of the National Pensions Awareness Week is expected to help create awareness, sensitize, and educate the people on all matters related to pensions as well as the activities of NPRA.

The week will also provide the platform to engage stakeholders on the development of pensions to invigorate a nationwide awareness on pensions. In specific terms, the nationwide activities during the Pensions Awareness Week will help Create a National Wide Awareness Campaign on Pensions, Provide a platform to engage stakeholders for the development of the Pensions industry, Bridge the pension knowledge gap among key stakeholders, Improve visibility and brand image of the Authority and increase pension coverage in the informal sector.The Ghana Living Survey has it that “Ghana has one of the highest proportions of persons aged 60 years and above in sub-Saharan Africa. With ongoing campaigns to reduce fertility and mortality, it is expected that this proportion will rise in the coming decades.”The number of older people in Ghana has increased more than seven-fold from 213 477 in the 1960 census to 2.7 million in the 2010 census.

In 2010, 6.7 percent of Ghana’s population was aged 60 or over. This raises much concern for the NPRA in terms of ensuring retirement income security for the Ghanaian worker.The situation appears worrying primarily due to Ghana’s aging review. More and more older people find themselves in a difficult financial situation when they reach retirement age because of lack of sufficient savings as housing costs and medical expenses rise. In Ghana today, many people in the informal sector reaching retirement age do not have any of the pension schemes that some workers in the formal sector have. They often have not put enough money into savings. The Authority has therefore embarked on a strategy to engage workers in the informal sector to whip up their interest and also encourage them to understand and appreciate the urgent need to register for a pension scheme to ensure retirement income security for all Ghanaians.

This will be the country’s maiden Pension Awareness Week celebration and will be a week-long programme from Monday 25th to Friday 29th October 2021 under the theme, “Total Participation in Pensions to ensure Retirement Income Security, “Activities during the week will also help in bridging the knowledge gap among some key stakeholders and, in the long run, improve participation in pensions and retirement planning. The Minister of Employment and Labour Relation Ignatius Bafour Awuah, at the launch of the week in Koforidua last Thursday, praised the efforts of NPRA in working to bring pension education to the doorsteps of the people, especially in the informal sector. He, however, charged them to do more.

Currently, available statistics have it that about six percent of the NPRA in recent times have collaborated with the Ghana Cocoa Board to register about 1.5 million cocoa farmers on a pension scheme. Plans are underway for the Authority to work with other institutions such as the Ghana Football Association and Driver Unions to register many more informal sector workers on pension schemes. As per media reports, the Authority will also use the occasion to engage the media to highlight pension matters as well as make known the activities of NPRA to the general public. There would also be market, community, industrial sensitisation, public lectures, stakeholder engagements, and quiz programme for students.The move by the NPRA is a laudable one and must be appreciated by all Ghanaians and for them to participate in the week to ensure decent income security for all Ghanaians.