Revolutionizing Pension Schemes: Metropolitan Ghana introduces Smart Save for pensioners
Metropolitan Pensions Trust Ghana has announced the launch of its new Tier 3 Personal Pension plan scheme, called “Smart Save,” which aims to supplement retirement benefits for Ghanaian pensioners.
The scheme is tailored to cater to the needs of both individuals and groups in both the formal and informal sectors, providing an opportunity for pensioners to benefit from a reliable and secure retirement plan.
The Smart Save pension plan is designed to be accessible to all, with policyholders able to start contributing as low as GHS 50. This low entry point is a significant feature that provides greater access to the pension scheme for those who may have previously been excluded from similar plans.
The plan also offers policyholders the added benefit of free life insurance cover, making it a more comprehensive retirement plan.
One of the unique features of the Smart Save pension plan is that it allows for 50% withdrawal after every three years, with full withdrawal allowed only on termination of scheme membership.
This feature provides policyholders with greater flexibility in managing their finances while still being able to enjoy the benefits of a pension plan. Upon retirement, members are paid a lump sum benefit, providing them with financial security in their retirement years.
The Smart Save pension plan is designed to be a benchmarked investment scheme, with returns being tied to the 91-day treasury bill rate. This approach ensures that policyholders receive competitive returns while minimizing their investment risks.
Additionally, policyholders can use the pension plan as collateral to secure mortgage loans, providing them with greater financial leverage.
Speaking at the launch of the pension scheme, the Acting CEO of Metropolitan Ghana, Rafique Daudi, stated that the pension plan product touches the hearts and livelihoods of people, making it a significant pension product for Ghanaians.
This statement highlights the importance of a reliable and secure retirement plan for the people of Ghana, especially as statistics from the National Pensions Regulatory Authority (NPRA) show that only about 10% of the working population in Ghana have access to pension schemes.
Furthermore, less than 2% of those in the informal sector have access to any form of pension scheme in the country, making it more critical for Metropolitan Pensions Trust Ghana to launch a scheme that caters to the needs of all.
Beatrice Ofei, the Board Chair of Metropolitan Pensions Trust Ghana, also spoke at the launch, stating that the Smart Save pension plan product would help increase pension coverage in Ghana and address the poor savings culture among Ghanaians.
This statement further emphasizes the need for innovative pension plans that are accessible to all and can help change the current savings culture in Ghana.
The launch of the Smart Save pension plan by Metropolitan Pensions Trust Ghana is a significant development in the pension sector in Ghana. The low entry point, free life insurance cover, and flexible withdrawal options make it a more accessible and comprehensive retirement plan for Ghanaians.
The benchmarked investment scheme, which can be used as collateral to secure mortgage loans, adds further value to the plan, making it a more attractive investment option.
With only 10% of the working population in Ghana having access to pension schemes, the Smart Save pension plan product has the potential to increase pension coverage and address the poor savings culture among Ghanaians.
