AN EVALUATION OF THE OLD AND NEW PENSION SCHEMES IN GHANA AND THEIR EFFECTS ON THE INFORMAL SECTOR

ABSTRACT This study examined the Old and the New Three-Tier pension schemes in Ghana with respect to their respective benefits and extent of coverage specifically in the informal sector. It has become an accepted norm for individuals to have some sort of economic security and assistance after retirement. About 80% percent of the Ghanaian workforce belong to the informal sector hence, the relevance of this study on this particular sect. Even though the study found the New Three-Tier system to have certain provisions for the informal sector, the measure of coverage showed the provisions were not reaching the informal sector. This study gathered data through the use of interviews with social security policy makers and interactions with a sample from the informal sector. The data collected showed that most respondents were not aware of the existing pension scheme and its benefits. This study in concluding, recommended the use of a designed mobile application, which will help make access to the informal sector better. The application is designed to register and upload contributions through a mobile platform. Educational programs through extension services and social media were also recommended to better educate the informal sector on the benefits and structure of the existing pension scheme.