Effect of Institutional Mechanisms on Micropension Saving Among Informal Economy Workers in the Greater Accra Region of Ghana

Abstract

The study investigated the effect of institutional mechanisms of micropension saving (MPS) schemes in extending coverage to informal economy workers. The research design used was the mixed method where both quantitative and qualitative data were collected to draw conclusion. Using principal component analysis, multiple regression analysis and interpretative approaches that yielded themes, the study concluded that more access provision, incentives and security result in increased informal economy workers’ participation in MPS. However, general form of financial information to informal economy workers was found to demotivate enrolment onto the scheme. Consequently, it is recommended for corporate pension trustees to create institutional structures like pension education campaigns on national television and radio to promote the culture of pension saving.

Keywords: Informal economy, financial institutions, micropension, security social, workers