People’s Pension Trust

People’s Pension Trust (here after: PPT) provides pension products mainly for informal sector workers in Ghana. While these workers comprise approximately 85% of the population, informal sector workers are traditionally not well protected by the Ghana social security system and therefore face higher risk of old-age poverty. PPT is one of the few private companies who is dealing with pension schemes for informal sector workers. Customers who sign up to PPT get access to an online savings account as well as an online retirement account. Hereby, PPT provides an opportunity for a huge customer segment to save for the future and to eventually decrease the income gap in the country. In addition to the personal pension schemes for the informal sector, PPT also offers a mandatory corporate pension scheme for formal sector employees and a provident fund scheme (employer-employee funded) that provides employees with an additional retirement lump sum. All these products/ services are provided by means of a digital payment platform.

To make this happen, PPT is collaborating with several banks to facilitate the payments.  Furthermore, PPT is exploring partnerships with companies who can give out loans to their informal sector workers, to further support financial inclusion. Moreover, PPT is working together with community-based organizations to bring informal workers together and to educate them about the importance of saving. PPT has also partnered with several investors that are supporting the aims of the company. And finally, the government can also be considered as an important partner, as they are the regulators of the financial sector in Ghana.

In order to achieve the ultimate goal of financial inclusion, several challenges must be addressed. First of all, there is a lack of trust from the Ghanian population towards digital payment options as a result of historical incidents of fraud by financial institutions. Secondly, even if people trust the organization as well as the process, people do not always understand how to use online platforms. Thirdly, there is low awareness about the importance to save money for the future. All these issues are being worked on by PPT by means of education through a program called the ‘Pension Clinic’, to eventually reach the goal of financial inclusion for informal sector workers.

You can find more information about PPT here.