New Forms of Social Insurance: The Case of the TUC–UNIWA Informal Sector Pension Scheme in Ghana

The TUC–UNIWA Informal Sector Pension Scheme was established in Ghana in 2017 by the Union of Informal Workers Associations (UNIWA) as a voluntary group pension scheme registered with the National Pensions Regulatory Authority (NPRA). Despite its flexible contribution regime, the scheme has struggled to grow, with only 1,511 members—just 0.8 percent of UNIWA’s total 185,000 membership at the time of this research.

Interestingly, uptake is higher among female UNIWA members, highlighting the gendered need and demand for social security among female informal economy workers in later life. However, several barriers hinder enrollment. These include low incomes, a lack of education and awareness about the scheme, and a lack of trust due to negative experiences with formal social security schemes in the past. Additionally, individual long-term savings schemes like this one often fail to guarantee adequate retirement incomes for most informal workers.

For instance, with an average membership age of 48 and a standard monthly contribution of US$15, members would accumulate only US$2,468 by the time they reach 60. This amount is insufficient to prevent individuals from outliving their savings or to generate adequate returns.

Government support through matching subsidies could significantly enhance the reach, sustainability, and impact of the TUC–UNIWA scheme. Such support would enable the scheme to extend its role beyond basic consumption smoothing to encompass insurance, poverty relief, and redistribution.

By Prince Asafu-Adjaye

Asafu-Adjaye, Prince. “New Forms of Social Insurance: The Case of the TUC–UNIWA Informal Sector Pension Scheme in Ghana.” WIEGO Resource Document No. 29, WIEGO, 2022.