Okere MP Backs Pension Reforms, Calls for Better Pay and Tax Breaks to Boost Retirement Savings

Member of Parliament for Okere, Hon. Daniel Nana Addo-Kenneth, has thrown his weight behind calls for urgent pension reforms, arguing that Ghana’s low wages and weak incentives are undermining workers’ ability to save for retirement.

Commenting on the Deputy Minority Leader’s statement on ageing and pensions, Hon. Addo-Kenneth told the House that poor remuneration is directly linked to inadequate pensions.

*“You cannot save if you’re not well paid”*

“Mr. Speaker, the Deputy Minority Leader made an important point on wages,” he said. “It is true that you cannot expect a Ghanaian worker who is not well paid to save enough for retirement.”

He noted that pension contributions are tied to basic salaries, so workers on low pay end up with meagre monthly deductions and poor retirement income. “If the base is weak, the pension will also be weak,” he added.

Hon. Addo-Kenneth urged government to consider tax breaks for voluntary pension contributions, especially for informal sector workers. He argued that incentives would encourage more Ghanaians to join pension schemes and top up their mandatory contributions.

“Flexibility and incentives are key if we want to bring the 70 to 80 percent of Ghanaians in the informal sector into the pension net,” he said.

The Okere MP said the debate on ageing should move beyond Parliament. He called for a broader national dialogue on wage policy, pension coverage, and social protection to prevent “age poverty” as Ghana’s elderly population grows.

“The Deputy Minority Leader is right. This is a national issue. We must act now before the demographic shift peaks,” Hon. Addo-Kenneth stated.