The Relevance of the Canadian Model for African Pensions Plans: A Case Study in Ghana

The Relevance of the Canadian Model for African Pensions Plans: A Case Study in Ghana

Among the different investment models around the world, the Canadian model is considered one of the most successful. The term Canadian model is somewhat misleading as the public pension plans differ in terms of their mandates, investment strategies, and organizational setup. The model is much more a set of principles related to three aspects: mission, governance, and investments.
The […] Canadian model is to deliver retirement security for its plan members, taking into account affordability, sustainability, intergenerational fairness, and risk sharing—all efforts within the Canadian model focus on fulfilling this mission.

Despite the issues related to public pension plans in the developed world, this stands in sharp contrast to a large group of countries that have limited or no retirement provisions in place. In many emerging markets, the standard three-pillar approach to retirement benefits is an ambition at best. One problem is related to the quality of national identity schemes; what is the coverage of such a scheme, and who is eligible for social benefits? Another problem is that a large percentage of people work in the informal sector with no labor contract and irregular income. In emerging markets, this percentage can be up to 80%. However, there are initiatives to fill this gap. The People’s Pension Trust in Ghana is an example of a green-field operation launching a private pension plan with the ambition to introduce this pension solution in other African countries too.


ISM Journal Vol. 4, issue 1, July 2021 ISSN 2150-1076


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