Ghana Case Study - How Incentives Can Boost Pensions For Informal Sector Workers

Overview

This case study examines Ghana’s efforts to expand pension coverage among informal sector workers through Tier 3 voluntary personal pension schemes introduced under the National Pensions Act. These defined contribution accounts allow informal workers and the self-employed to save flexibly for retirement through licensed trustees and fund managers. A notable innovation is the use of sector-based contribution channels, including cocoa farmers contributing through the COCOBOD cocoa marketing system. By linking pension savings to existing payment flows, this approach acts as a form of 'second-generation' auto-enrolment for informal workers. While coverage remains modest overall, the system demonstrates the potential of matching incentives, flexible contributions, and value-chain based enrolment mechanisms.

Ghana’s experience suggests that embedding pension contributions into existing economic structures can significantly improve participation among informal workers.