An economic analysis of the Ghanaian pension system

Abstract

The pension industry plays a critical role to ensure old age income security. If the aged are not well protected, it may cause hardship and fiscal pressure and may have negative implications for the labour market, financial markets, savings, and economic growth in general. This research provides an economic analysis of the Ghanaian pension system and evaluates the system in correspondence with the recommendations of the World Bank and other institutions. The research ascertains whether the pension paid to beneficiaries is adequate, explores challenges of pension implementation in Ghana, and examines lessons that can be learned from pension systems of some selected developing countries. The comparative analysis is based on the World Bank multi-pillar pension evaluation model. To ensure that the comparative study is effective, informative, and beneficial the countries selected are Chile, Mauritius, and Singapore. These countries have made strides in their pension system implementations. This research adopts a qualitative research approach and is entrenched in a pragmatist philosophical stance following a thematic method of analysis. Due to the Covid-19 pandemic, telephone interviews were used to draw information from ten pensioners and ten pension fund managers to enhance the research. The main findings of the research are that Ghana’s pension system provides inadequate pensions, has a sustainability threat, does not promote equity, and is not affordable to private-sector employers. Furthermore, there are also investment risks, a lack of robustness, weak supervision, and labour market distortions. The pension system is, however, predictable and contributes to economic growth. Some of the recommendations made for Ghana and other developing countries include: that a relatively low pension premium should be set by managers to attract low-income earners to participate; government should institute policies to ensure that business registrations are automatically linked to pension enrolment to improve coverage; and electronic contribution and payment systems should be adopted and encouraged by pension managers to enhance easy access and regular contributions.

Die pensioenbedryf speel ’n deurslaggewende rol om ouderdoms-bestaansbeveiliging te verseker. As bejaardes nie behoorlik gedek word nie, kan dit tot swaarkry en fiskale druk lei. Dit kan boonop negatiewe implikasies vir die arbeidsmark, finansiële markte, besparing, en ekonomiese groei oor die algemeen hê. Hierdie navorsing bied ’n ekonomiese ontleding van die Ghanese pensioenstelsel en evalueer die stelsel in ooreenstemming met die aanbevelings van die Wêreldbank en ander instansies. Die navorsing bepaal of die pensioen wat aan begunstigdes betaal word, voldoende is. Ondersoek word ook gedoen na die uitdagings wat pensioen-implementering in Ghana in die gesigstaar, sowel as die lesse wat geleer kan word uit die pensioenstelsels van uitgesoekte ontwikkelende lande. Die vergelykende ontleding is gegrond op die Wêreldbank se multipilaar-evaluasiemodel. Om te verseker dat die vergelykende studie doeltreffend, informatief en voordelig is, is Chile, Mauritius en Singapoer gekies vir die studie. Hierdie lande het goeie vordering gemaak in die implementering van hul pensioenstelsels. Die navorsing volg ’n kwalitatiewe navorsingsbenadering en is veranker in ’n pragmatiese filosofiese standpunt waar ’n tematiese ontledingsmetode gebruik word. Vanweë die Covid-19-pandemie is telefoniese onderhoude gevoer om inligting van tien pensioenarisse en tien pensioenfondsbestuurders te bekom om die navorsing aan te vul. Die hoofbevindinge van hierdie navorsing is dat Ghana se pensioenstelsel ontoereikende pensioene voorsien, ’n volhoubaarheidsrisiko behels, nie gelykheid bevorder nie, en nie bekostigbaar is vir werkgewers in die privaatsektor nie. Daar is boonop ook beleggingsrisiko’s, ’n gebrek aan robuustheid, swak toesighouding, en verwringing van die arbeidsmark. Die pensioenstelsel is egter voorspelbaar en dra tot ekonomiese groei by. Sommige van die aanbevelings wat vir Ghana en ander ontwikkelende lande gemaak is, sluit in: dat bestuurders ’n relatief lae pensioenpremie moet vasstel om lae-inkomste-verdieners te lok om deel te neem; dat regerings beleid moet instel wat verseker dat besigheidsregistrasies outomaties aan pensioenfondslidmaatskap gekoppel word om dekking te verbeter; en dat pensioenfondsbestuurders elektroniese bydrae- en betalingstelsels moet gebruik en aanmoedig om maklike toegang en gereelde bydraes te bevorder.

Imboni yezimpesheni idlala indima ebalulekile ekuqinisekiseni ukuvikeleka kweholo labadala. Uma asebekhulile bengavikelekile kahle, kungase kubangele ubunzima nengcindezi yezezimali futhi kungase kube nomthelela omubi emakethe yezabasebenzi, ezimakethe zezimali, ukonga, kanye nokukhula komnotho ngokuvamile. Lolu cwaningo luhlinzeka ngokuhlaziywa kwezomnotho kohlelo lwempesheni yaseGhana futhi luhlola uhlelo ngokuvumelana neziphakamiso zeBhange Lomhlaba nezinye izikhungo. Ucwaningo luqinisekisa ukuthi impesheni ekhokhelwa abahlomulayo yanele yini, luhlola izinselele zokusetshenziswa kwempesheni eGhana, futhi luhlola izifundo ezingafundwa ezinhlelweni zempesheni zamazwe athile asathuthuka akhethiwe. Ukuhlaziya okuqhathanisayo kusekelwe esifanekisweni sokuhlola impesheni yeBhange Lomhlaba elinezinsika eziningi. Ukuze kuqinisekiswe ukuthi isifundo sokuqhathanisa siyasebenza, sinolwazi, futhi sinenzuzo, amazwe akhethiwe yiChile, iMauritius, neSingapore. Lawa mazwe enze intuthuko ekusebenziseni uhlelo lwawo lwempesheni. Lolu cwaningo lwamukela indlela yocwaningo olusezingeni eliphezulu futhi lugxile esimweni sendlela yokubhekana nezinkinga ezigxile ezindleleni ezingokoqobo nezisombululo kulandela indlela egcizelela ukuhlonza, ukuhlaziya nokuhumusha amaphethini encazelo ngaphakathi kwemininingwane esezingeni eliphakeme. Ngenxa yobhubhane lwe-Covid-19, kusetshenziswe izingxoxo ngocingo ukuthola ulwazi kwabahola impesheni abayishumi kanye nabaphathi bezikhwama zempesheni abayishumi ukuze kuthuthukiswe ucwaningo. Okutholakele okuyinhloko kocwaningo ukuthi uhlelo lwempesheni yaseGhana luhlinzeka ngempesheni enganele, lunobungozi bokusimama, alukhuthazi ukulingana, futhi alukwazi ukuthengeka kubaqashi bezinkampani ezizimele. Ngaphezu kwalokho, kukhona nezingozi zokutshalwa kwezimali, ukuntuleka kokuqina, ukugadwa okubuthakathaka, kanye nokuhlanekezelwa kwezimakethe zezabasebenzi. Uhlelo lwempesheni nokho luyabikezelwa futhi lunomthelela ekukhuleni komnotho. Ezinye zeziphakamiso ezenzelwe iGhana namanye amazwe asathuthuka zihlanganisa: ukuthi inkokhelo yempesheni ephansi uma kuqhathaniswa kufanele ibekwe abaphathi ukuze bahehe abahola kancane ukuba babambe iqhaza; uhulumeni kufanele asungule izinqubomgomo zokuqinisekisa ukuthi ukubhaliswa kwamabhizinisi kuxhumene ngokuzenzakalela nokubhaliswa kwempesheni ukuze kuthuthukiswe ukutholakala kwezimali; kanye nezinhlelo zokukhokha nge-inthanethi kufanele zamukelwe futhi zikhuthazwe ngabaphathi bezimpesheni ukuze kuthuthukiswe ukufinyelela okulula kanye neminikelo evamile.