FlexiPension launch targets informal workers’ retirement security     

By Sandra Agyeiwaa OTOO

People’s Pension Trust (PPT) in partnership with MTN Mobile Money Fintech Limited has launched FlexiPension, a digital retail personal pension product aimed at expanding retirement coverage to millions of Ghanaians working in the informal sector.

The launch, held in Accra as part of PPT’s 10th anniversary celebrations, marked a significant step toward addressing one of Ghana’s longstanding social and economic challenges – providing accessible retirement security for workers who are not covered by employer-sponsored pension schemes.

Speaking at the event, Chief Executive Officer (CEO) of People’s Pension Trust Issaka Ibrahim underscored the need to address one of Ghana’s most pressing social and economic challenges.

“We gather to take another significant step toward solving one of Ghana’s greatest social and economic challenges ensuring that every working Ghanaian, regardless of occupation or income level, has a realistic pathway to retirement security,” he stated.

He mentioned that FlexiPension allows users to open and manage a pension account through their mobile phones, removing many of the barriers that have historically prevented informal sector workers from participating in pension schemes.

The product operates under the National Pensions Regulatory Authority’s (NPRA) Tier 3 voluntary pension framework and enables members to contribute any amount at any time through their MTN Mobile Money wallets.

Contributions are split equally between a savings account and an investment account, allowing members to access part of their savings after six months while building long-term retirement benefits.

According to Mr. Ibrahim: “Over the past decade, we have grown from a bold idea into a trusted pension institution. We have pioneered micro-pensions, embraced technology, expanded access and continuously challenged ourselves to find better ways of serving Ghanaian workers.

“There could be no more fitting way to celebrate this milestone than by launching a solution designed to bring millions more people into the pension ecosystem,” he further explained.

Mr. Ibrahim said many workers in Ghana, particularly those in the informal sector, are unaware they can open a pension account on their phones within minutes, save at their own pace, access part of their savings for emergencies after six months and build a retirement fund that will support them when they are no longer able to work.

The launch is changing that reality by making retirement planning more accessible, flexible and relevant to the needs of everyday Ghanaian workers, he stated.

He also emphasised that the initiative’s significance is not the technology or innovation behind it, but its potential to make pension coverage more inclusive and ensure every worker has an opportunity to secure their financial future.

He commended the partnership with  MTN Mobile Money Fintech Limited, noting that the company had gone beyond providing a distribution platform to helping transform an ambitious vision into an accessible retirement solution for Ghanaians.

“Our partners at MTN Mobile Money Fintech Limited not only provided us with a distribution channel but have also helped transform an ambitious idea into an accessible reality,” he said.

According to him, developing a fully digital pension solution required the seamless integration of technology, regulatory compliance, operations, customer experience and disciplined execution, all of which the team has delivered with excellence.

“Building a fully digital pension solution requires technology, compliance, operations, customer experience, and relentless execution. You have delivered all of it with excellence,” he explained.

The Chief Executive Officer (CEO) of the National Pensions Regulatory Authority (NPRA), Chris Boadi-Mensah, speaking at the launch said Ghana’s economy is on a recovery path driven by strong growth, low inflation and a stable cedi – but stressed that these gains must benefit the majority of citizens.

“Look at the markers of our economic resilience: real GDP grew by 6 percent in 2025 and the IMF projects another 4.8 percent growth this year. Headline inflation has plummeted to 3.3 percent,” he noted.

“Our cedi is stabilising and our reserves stand strong at over 5.7 months of import cover. Ghana is undeniably on a recovery path. But true economic growth is incomplete if it does not reach the majority of our people,” he further added.

He noted that about 14.2 million Ghanaians representing 80 percent of the workforce operate in the informal sector, yet contribute only 27 percent of the country’s GDP due to limited access to tools, social protection and formal structures that enhance productivity.

He added that pension coverage has for too long remained out of reach for many of these workers despite their critical role in driving the economy.

He noted that although Ghana’s pension assets under management have exceeded GH¢100billion, only about 1.2 million informal sector workers are enrolled in pension schemes – representing roughly 16 percent of the target population.

“Let us speak plainly. Our pension assets under management have crossed an historic GH¢100billion threshold. That is a testament to the robust regulatory system built by the NPRA. Yet out of that massive fund, only 1.2 million informal sector workers are enrolled. That is barely 16 percent. This is not a minor gap, it is a structural failure we are duty-bound to correct,” he asserted.

He disclosed that when People’s Pension Trust (PPT) submitted this product to the NPRA, the authority subjected it to a thorough review before granting its formal ‘No Objection’ in June 2025.

According to him, the approval was given because the initiative goes beyond a commercial offering and serves a broader national development purpose, demonstrating that business success can be aligned with social impact.

For him, digital innovation is not a threat to regulation but its strongest ally. He noted that while informal sector pension coverage rose from 13.2 percent in 2024 to 16.7 percent in 2025, significant gaps remain – adding that the Pensions Digital Ecosystem (PDE) will support ongoing efforts to bridge them.

Mr. Boadi-Mensah noted: “Our efforts are already resonating beyond our borders. Ghana has secured hosting rights for the 2026 African Pension Supervisors Association Conference and the NPRA has been appointed to the International Organisation of Pension Supervisors’s Executive Committee. We are no longer just building a national system; we are leading a continental conversation”.

He commended People’s Pension Trust for tailoring its product to the realities of informal sector workers with irregular incomes who depend largely on mobile money for daily transactions.

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