Only 1.6m out of 10m workers covered by pension’s scheme – Axis Pension Trust CEO

The Chief Executive Officer (CEO) of the Axis Pension Trust, Mr Afriyie Oware has noted that at the moment only 1.6million out of the 10million people in the labour force are covered by pension’s scheme.

He described the situation as a ‘sad’ development that must be tackled but not through the Micro pension initiatives as proposed by the National Pensions Regulatory Authority, (NPRA).

In his view, the proposal by the NPRA is a short-term intervention that may not be sustainable.

Speaking at the second edition of the Pensions Strategy Conference organized by Axis Pension Trust, Mr Afriyie Oware said the only way Ghana can protect the vulnerable is to include the informal sector into the country’s pension scheme.

“Ghana is estimated to have over 10 million people in the labour force. Sadly, only 1.6m workers are covered by pension schemes”, he stated.

“A more sustainable solution lies in formalizing key informal sector businesses such as commercial drivers, restaurants, food vendors and mechanics through licensing, permits and regulations”.