President John Dramani Mahama has directed a comprehensive review of Ghana’s pension system aimed at expanding coverage and strengthening retirement security for workers across the country.
The President announced the move during a dialogue with organized labour at the presidency, warning that Ghana’s pension system is at a critical turning point and requires urgent reforms to ensure its long-term sustainability.
President Mahama revealed that nearly two decades after the introduction of the three-tier pension scheme, coverage remains significantly low.
According to him, out of an estimated 10 million workers in Ghana, fewer than two million are actively contributing to the pension system.
He added that pension assets currently stand at about GH¢100 billion, representing only around 7 percent of the country’s Gross Domestic Product (GDP), a figure he noted falls below benchmarks in other African countries.
“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,” the President cautioned.
To address these challenges, President Mahama said he has tasked the Minister of Finance to oversee a thorough review of the pension structure. The review will focus on expanding coverage, particularly within the informal sector, modernising contribution systems, and strengthening governance and investment management.
He stressed that the ultimate goal of the reforms is to ensure that every Ghanaian worker retires with dignity, security, and confidence in the pension system.
The President also linked pension reforms to broader efforts to improve Ghana’s labour and compensation systems, noting that sustainable pensions are critical to social protection and national development.
The engagement with organized labour forms part of a series of consultations by the government to address key economic and social issues affecting workers and to build consensus around major policy reforms.
President Mahama urged stakeholders to support the reform process, emphasizing that a stronger and more inclusive pension system is essential to safeguarding the future of Ghana’s workforce.
Source: Mubarak Yakubu/angelonline.com
