To secure the future of their clients,Teleommunication Company, MTN Ghana has introduced a new product on its Mobile Money platform tagged, ‘My own pension service’.
The service, which will provide pension benefits and ensure retirement income security will also cover workers both in the formal and informal sector.
With about 85% of the country’s labor force in the formal sector, one would have expected constant renewal of pension reforms focused on the formal sector.
But according to the 2014 International Labor Organization report, only 1 out of 13 elderly people receive pension and only 1 out of 7 people in the labor force is covered under SSNIT, a situation that raises great concerns.
Whilst research has indicated that the main reason why formal sector workers do not want to participate in voluntary pension system is because of the strict criteria and obligations involved, many have argued that the paperwork involved is time consuming and a put off.
Speaking at the launch of ‘My Own Pension Scheme’ organized by MTN Ghana in collaboration with United Pension Trustees, the General Manager, Mobile Financial Services of MTN Ghana, Eli Hini said the new product will address the various challenges faced by workers in both the formal and informal sector and also cushion the future of interested subscribers.
“The number of informal sector workers who have access to social benefit through institutionalized social security schemes is negligible. What this means is that an overwhelming majority of Ghana’s labor force have been left out of structured pension arrangements.
But our duty at MTN Ghana is to ensure that our customers benefit fully from this innovation. MTN Ghana is therefore committed to ensuring that our customers enjoy brighter lives not only during their active working years but also in retirement,” he noted.