The National Pension Regulatory Authority (NPRA) has advised informal sector workers to register for tier three pension to reduce their financial dependence on their children in old age.
Tier three is an optional contributory scheme with monthly contributions of up to 16.5 per cent of the basic salary of all employees and informal sector workers, and privately managed by NPRA licensed service providers.
“The majority of workers in the country are in the informal sector. It is, therefore, important for employees in the informal sector to think about a plan to secure their future not to burden their benefactors,” Mrs Rosina Akrofi, Assistant Manager Corporate Affairs, NPRA said.
She was speaking at a financial literacy programme organised for some traders in Accra by the Ministry of Finance, aimed at empowering the citizenry against fraudulent investment schemes and how to manage their finances prudently.
The programme received institutional support from the Bank of Ghana (BoG), National Pension Regulatory Authority (NPRA), National Insurance Commission (NIC) and the Securities and Exchange Commission (SEC).
“These days when you depend on your family to take care of you when you’re old, you become a burden on them. So, it is important to have your own retirement plan to avoid this situation,” Mrs Akrofi said.
Mrs Akrofi urged traders not to hesitate to register and contribute regularly to pension to reap the benefit when due, extending special invite to farmers, fishermen, hairdressers, tailors, and drivers to join the scheme.
Mrs Deborah Freeman, General Secretary, Union of Informal Workers Association, (UNIWA), lauded the Finance Ministry for the foresight.
She said with the education received, she was confident that the traders would be well-informed to make the right investment and financial management decisions.
“Money is important in both your trade, personal and family life – if you don’t educate yourself on effective management and investment, you’ll end up losing your life-time funds – so, let’s be cautious,” Mrs Freeman said.