Strategies to Boost Your Retirement Savings through Employer Contributions

Why Focus on Employer Contributions?

Maximizing employer contributions to your pension is a smart strategy for increasing your retirement savings without any extra cost to you. Employer contributions can significantly grow your pension pot, especially when combined with your personal savings.

Top Strategies to Maximize Employer Contributions

• Understand Your Pension Scheme:
  • Know the details of your company’s pension plan. Many employers match a percentage of your salary in contributions, often up to a specific limit (e.g: 5%).
  • Tip: Check with HR or your pension provider to understand your company's contribution limits and rules
• Contribute Enough to Get the Full Match:
  • Always contribute at least the amount needed to receive the maximum employer match. For example, if your employer matches contributions up to 5% of your salary, make sure you’re contributing at least that amount
  • Why?: Not contributing enough means you’re leaving free money on the table
• Take Advantage of Tier 2 Contributions:
  • In Ghana, under the National Pension Scheme, your employer is required to contribute to your Tier 2 pension fund (mandatory occupational pension). Make sure you're fully benefiting from this, as it's over and above your salary
• Increase Your Own Contributions:
  • If you can afford it, increase your own contributions. While this doesn’t increase the employer's contribution, it amplifies the overall growth of your retirement savings
• Explore Employer Pension Incentives:
  • Some companies offer additional incentives, such as bonuses or extra contributions for long service, salary sacrifice options, or flexible benefits
  • Action Plan: Ask if your employer offers additional contributions based on years of service or loyalty programs
• Monitor Your Pension Performance:
  • Regularly check your pension statements to ensure employer contributions are being made on time and that they are correctly reflected in your account

Key Takeaways

• Free Money: Maximize your employer match by contributing at least the minimum required.
• Leverage Tier 2: Ensure you’re fully benefiting from Ghana’s mandatory employer contributions.
• Boost Savings: Consider adding extra contributions from your side to grow your fund faster.
• Explore Incentives: Take full advantage of any extra pension-related benefits offered by your employer.

Maximize Your Retirement Savings with CedisPay

Learn how to optimize employer contributions through the CedisPay Financial Wellbeing App. Ensure you’re getting the most out of your pension plan, building a secure financial future today!