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Every Ghanaian worker must retire with dignity, according to President John Mahama, who also announced a significant overhaul of the nation’s pension system.
During a discussion with Organized Labor on Tuesday, March 17, at the Jubilee House, the President issued a warning that Ghana’s pension system is at a crucial turning point.
“My comrades and friends, our pension system stands at a critical crossroads,” he emphasized that coverage is still very low even twenty years after the three-tier pension scheme was implemented.
He claims that less than two million of the estimated 10 million workers are actively participating in the program, which raises questions about its long-term viability.
He also disclosed that Ghana’s pension assets presently amount to about GH¢100 billion, or roughly 7% of the country’s GDP. He pointed out that this amount is lower than standards in other African nations.
“If we fail to act, the imbalance between contributors and retirees will continue to deepen, threatening the system’s sustainability and the dignity of our future retirees,” President Mahama urged.
The President declared that he has instructed the Minister for Finance to conduct an in-depth review of the pension system in order to remedy the issues.
He clarified that the assessment will concentrate on boosting governance and investment management, modernizing contribution processes, and broadening coverage, especially in the informal sector.
“Our goal is clear, every Ghanaian worker must retire with dignity, with security and confidence in the pension system,” he added.
Source: Ghanatodayonline.com
