President John Dramani Mahama has directed a comprehensive review of Ghana’s pension system, warning that the country faces a looming retirement crisis if urgent reforms are not implemented.
Speaking at a presidential dialogue with organised labour at Jubilee House on Tuesday, President Mahama revealed that the pension framework currently covers only a small fraction of the workforce it was designed to protect.
“Out of an estimated 10 million workers, fewer than 2 million are contributing regularly,” he disclosed, highlighting the significant coverage gap nearly two decades after the introduction of the three-tier pension system.
The President further noted that total pension assets currently stand at approximately 100 billion Ghana cedis, around 7 percent of Gross Domestic Product (GDP), describing this figure as far below continental benchmarks.
“I am afraid to say this is well below continental benchmarks, comparative with other African countries,” he said.
Warning of the risks posed by the imbalance between contributors and retirees, President Mahama stressed the need for immediate action.
“If we fail to act, the imbalance between contributors and retirees will continue to deepen, threatening the system’s sustainability and the dignity of our future retirees,” he cautioned.
In response, he announced that he has instructed the Minister of Finance of Ghana to lead a structured and far-reaching review of the pension system.
“I have instructed the Minister of Finance to oversee a thorough review of our pension structure, with the aim of expanding coverage, especially to the informal sector, modernising our contribution systems, and strengthening governance and investment management,” President Mahama said.
The informal sector, which constitutes the majority of Ghana’s working population but remains largely outside the pension net, will be a central focus of the review.
Emphasising the human impact of the reforms, the President added, “Our goal is clear every Ghanaian worker must retire with dignity, with security, and with confidence in the pension system.”
The review is expected to inform policy reforms that strengthen social protection and ensure the long-term sustainability of Ghana’s pension system.
Story: Patrick Asford Boadu
