GNAT Provident Fund: A crucial retirement planning tool for Ghanaian workers
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The Tier-3 Pension Contribution, specifically the GNAT Provident Fund, has been hailed as a saviour for retirement planning.
Retirement planning is crucial for individuals from early adulthood, and one of the critical plans to focus on is the Tier-3 contribution.
The GNAT Provident Fund is a voluntary, fully funded, and privately managed scheme that is instituted under the Pensions Act in Ghana.
The scheme is managed by Trustees licensed by the National Pensions Regulatory Authority (NPRA), and both employers and employees can contribute, with the employee enjoying tax relief on their salary or income.
The government allows up to 16.5% of the employee’s monthly basic salary as tax relief. After ten years of contributing to the scheme, withdrawals can be made without paying any taxes.
However, if the withdrawal is done before the tenth year, for any purpose other than getting a mortgage, it is subject to tax at a rate of 15%. A tax-free lump sum is given to contributors if no withdrawal is made till retirement.
Individuals are encouraged to obtain their GNAT Provident Fund enrollment form from the nearest GNAT Secretariat and take advantage of this great scheme.
SOURCE: Coverghana.com.gh
