Attitude Of Public Sector Workers Towards Voluntary Pension Schemes: A Case Study Of The Upper East Region Of Ghana

ABSTRACT

A public pension scheme is the only formal scheme that guarantees income security for the aged. In this regard, the voluntary pension scheme is an income supplement, therefore, it is economically prudent for workers to embrace the schemes as an optional insurance to ensure income security and alleviate poverty among individuals to cope with major retirement risks. The purpose of the study was to assess the attitude of public sector workers towards voluntary pension schemes as a way of providing adequate income security as a supplement for Ghanaian workers. The study used simple random and purposive sampling techniques to sample 375 public sector workers and managers/regional representatives of tier-three funds from the Upper East Region of Ghana. Data was collected using administration of questionnaires and through an interview guide whiles the analysis of data gathered was done using SSPS version 23. The study revealed that, majority of Public sector workers have little knowledge about the voluntary pension scheme as a component of the Three-Tier Scheme. The study further revealed that the voluntary pension scheme provides better pension benefits to Ghanaian workers. Additionally, the study posits consensually that, provident funds are poorly managed in Ghana. Therefore, there is a need for public education and sensitizations to bridge this knowledge gap ensuring that people understand all aspect of voluntary pension schemes to increase the number of enrolment and sustainability of the scheme. It is also imperative for Government to make it mandatory for employers to also contribute to employees’ provident fund under the recent pension scheme.