Increase minimum pension to sustain economic welfare of pensioners - ACRR to SSNIT

Minimum pension has been GH¢ 300 since 2018

Pensioners on the Average have at least 6 dependents – ACCR

COVID-19 has increased the cost of medical care for pensioners, ACCR

Africa Centre for Retirement Research (ACRR) has urged SSNIT to increase Ghana’s minimum pension of GH¢ 300 in order to sustain the economic welfare of pensioners.

According to ACRR, a Post-Retirement Income Survey in October 2020 showed that over 80 percent of pensioners in Ghana were estimated to rely on social security pay-outs as their main source of livelihood.

The study also showed that on the average, each retiree had six persons who economically depend on him/her for their living.

“The survey also revealed that the Pandemic has caused increased hospital visitation by Pensioners, resulting in increased cost of healthcare,” ACRR added.

The centre said the increase in medical costs incurred by pensioners due to the outbreak of COVID-19, made the minimum pension insufficient.

“To practically sustain the economic welfare of pensioners, the minimum pension, which has stayed at GH300.00 since 2018 needs to be reviewed upward in 2022, to reflect the actual cost of living. That will also close the growing economic gap between new and old retirees, ”ACRR further stated.

The ACRR suggested that the SSNTI (Social Security and National Insurance Trust) should examine its current basis of reviewing pensions needs.

“We hold the opinion that, in reviewing pensions (as stipulated in section 80 of the Act), the Trust could administratively consider a model that segregates the fixed rate of increment in a manner that, high monthly pension earners shall receive a moderately lower fix rate as compared to low monthly pension earners.

“This will minimize the growing economic inequality between the rich and the poor, deepen the solidarity and risk pooling principles on which social security thrives, as well as improve the long-term financial health of the scheme,” the centre added. Read Full Story