The Africa Centre for Retirement Research has raised concerns over the recent 12% increase in monthly pension payments announced by the Social Security and National Insurance Trust (SSNIT). According to the Executive Director of the Centre, Mr. Mashud Abdallah, the adjustment falls short of addressing the worsening financial challenges faced by pensioners. He warned that without more comprehensive reforms, many retirees risk enduring deeper economic hardships despite the increment.
SSNIT recently announced that the 12% adjustment, effective January 2025, is part of its annual indexation process. The revision, undertaken in consultation with the National Pensions Regulatory Authority (NPRA) and in line with Section 80 of the National Pensions Act, 2008 (Act 766), will apply to all eligible pensioners on SSNIT’s payroll as of December 2024.
The increment is structured as an 8% fixed rate plus a flat amount of GHS 72.58, representing a 4% redistribution. Following this adjustment, the lowest-earning pensioner will receive GHS 396.58 per month, reflecting a 32.19% increase over the 2024 minimum pension. Meanwhile, the highest-paid pensioners under PNDCL 247 and Act 766 will see their monthly pensions rise to GHS 201,792.37 and GHS 28,703.01, respectively.
SSNIT justified the increase as a measure to protect the real value of pensions and help retirees cope with the escalating cost of living. It reiterated its commitment to safeguarding pensioners’ financial stability and ensuring they enjoy a dignified retirement.
Despite these assurances, critics like Mr. Abdallah argue that the increment is insufficient to meet the growing economic demands faced by retirees. “Many pensioners are already struggling, and this adjustment does little to ease their financial burdens. Comprehensive reforms are urgently needed to make pensions more sustainable and impactful,” he stated.
As the policy takes effect, pensioners are cautiously optimistic, hoping the increase will provide some relief. However, public discourse continues to focus on the need for broader improvements in pension management, with stakeholders urging the government and regulatory bodies to explore long-term solutions to safeguard retirees’ well-being amidst evolving economic challenges.
Story by: Mercy Addai Turkson
