A pension scheme is a structured savings arrangement designed to provide financial benefits to individuals after retirement, exit from employment, or in certain qualifying events such as permanent disability or death.
Pension planning ensures financial security after active employment. It provides a steady source of income or lump-sum benefit to support living expenses and maintain dignity in retirement.
All pension schemes in Ghana are regulated by the National Pensions Regulatory Authority (NPRA), which ensures compliance, governance, and protection of contributors’ funds.
Ghana operates a Three-Tier Pension System:
Tier 3: Voluntary provident fund and personal pension schemes (managed by approved trustees like Kimpton Trust)
Tier 1 and Tier 2 are mandatory for workers in the formal sector. Tier 3 is voluntary and designed to enhance retirement benefits.
A total of 18.5% of gross salary is contributed for employees under the mandatory scheme:
Both employers and employees contribute. Employers are responsible for deducting and remitting contributions to the appropriate pension institutions.
Yes. Pension contributions made within approved limits under the Pensions Act are tax-deductible for formal sector workers.
Tier 2 benefits are typically payable upon:
Early access depends on the type of scheme:
