NPRA targets 25% pension penetration in informal sector by 2026

The National Pensions Regulatory Authority (NPRA) is working to increase pension penetration amongst the informal sector workers.

This move if finalized will see the penetration increased from 6 to 25 percent by 2026.

The Authority explains that although a section of the informal sector hold a misconception about pensions it is committed in its sensitization drive to ensure that its targets are achieved.

These comments were made by the Chief Executive Officer of the National Pensions Regulatory Authority, Hayford Attah Krufi at a brief ceremony to highlight the end of the SECO project.

“Up to about last two years there was only 1 percent of Ghanaians in the informal sector who had registered unto a pension scheme but currently it is now 6 percent,” he said.

“Progress is being made even though it is slow but steady and in our strategic plan we have aimed that by 2026 we should be able to move it to 25 percent. People have to wake up from the wrong perception that pension is only for the formal sector,” he added.

Mr. Hayford Attah Krufi further assured that the National Pensions Authority (NPRA) is leveraging on the technical expertise and knowledge offered by the Swiss government to effectively regulate the growing pension industry in Ghana.

According to the NPRA, through the Swiss Secretariat for Economic Affairs it has been able to rollout a risk based framework work and supervision systems as part of moves to mitigate some of the challenges of the activities of industry players such as non-compliance.

The two – phased project started in 2014 and second phase began in 2019. The total amount financed by the Switzerland was 4.2 million Swiss Franc (Approximately 50 million Ghana cedis)

Source: Ghana Business