Boost Your Retirement Savings with Ghana’s Tier 3 Voluntary Contributions

What is the Tier 3 Pension Scheme?

The Tier 3 Pension Scheme is a voluntary pension savings plan that allows employees, employers, and self-employed individuals to contribute additional funds toward retirement.

Why Opt for Tier 3?

• Increase Your Retirement Savings:
  • By contributing to Tier 3, you can supplement your Tier 1 and Tier 2 pensions, ensuring you have more income when you retire
  • Your savings grow over time through investment returns, managed by professional private pension fund managers
• Tax Benefits:
  • Contributions are tax-deductible: This reduces your taxable income, meaning you pay less tax today while saving for the future
  • Tax-free growth: The returns on your Tier 3 investments are tax-free, allowing your money to grow faster
• Flexibility in Contributions:
  • Unlike the mandatory Tiers 1 and 2, Tier 3 allows for flexible contributions based on your financial situation. You can increase or decrease your contributions as needed
• Early Access to Funds:
  • After a minimum of 10 years, you can access a portion of your Tier 3 contributions, giving you some flexibility in emergencies or financial planning
• Maximum Contribution Limit:
  • Contributions to Tier 3 are capped at 16.5% of your monthly salary. This limit includes both employee and employer contributions and ensures that savings remain within the allowable tax-free threshold.
• Personal Pension Growth:
  • Ideal for self-employed individuals or anyone looking to grow their pension beyond the mandatory contributions, offering a personalized plan for your financial security

Key Takeaways

• More Retirement Income: Tier 3 adds to your total retirement savings
• Tax Savings: Contribute now, save on taxes, and let your money grow tax-free.
• Investment Growth: Professional fund managers help maximize the growth of your contributions.
• Flexibility: Access funds when needed and tailor your contributions to fit your financial goals.
• Maximizing Savings: You can contribute up to 16.5% of your salary tax-free, optimizing your retirement fund growth.

Maximize Your Future with CedisPay

Explore how the Tier 3 Pension Scheme can work for you through the CedisPay Financial Wellbeing App. Start voluntary contributions today to secure a comfortable retirement tomorrow!