Factors influencing uptake of voluntary pension scheme by urban informal sector workers: evidence from takoradi metropolis

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This study examined the factors that influence the uptake of voluntary pension scheme by urban informal sector workers in Ghana. The study adopted the cross-sectional design which involves the collection of data once at a point in time, with a focus on the survey strategy. The study focused on 300 informal sector workers in Takoradi. The data was analysed descriptively as well as the binary logistic regression. The study found that respondents have high level of awareness on voluntary pension scheme in Ghana. It was also discovered that educational qualification and marital status do not have significant effect on uptake of voluntary pension scheme. However, gender, age and income level have significant positive effect on uptake of voluntary pension scheme. It was also found that lack of trust, low income, future uncertainty, and lack of awareness are the main barriers to enrolment on voluntary pension scheme. Additionally, it emerged that the major challenges faced contributors of voluntary pension scheme include high fees, irregular income, and poor customer service. Employers and Trade Associations should collaborate with pension scheme administrators and government bodies to facilitate enrolment in the voluntary pension scheme for informal workers. They should Promote the benefits of the scheme to employees and encourage participation through awareness campaigns and educational programs and provide support and guidance to employees during the enrolment process.
A thesis submitted to the department of accounting and finance, college of humanities and social sciences, in partial fulfillment of the requirements for the degree of master of science in accounting and finance.