The Social Security and National Insurance Trust (SSNIT) wants broader consultations with government and labour unions over a possible increase of retirement age, from 60 to 65 years.
With huge liabilities on the balance sheet of the Trust, the Director-General of SSNIT, Dr. John Ofori-Tenkorang, believes reviewing the retirement age which is the practice in the USA would not only ease the burden on the Trust, but also increase contributions.
Dr. Ofori-Tenkorang said hit outfit pays pensions of contributions as old as 100 years, and therefore extending the retirement age to 65 years must be critically looked at.
“After 75 years, we’ll continue to pay you until the good Lord calls you home. So in theory, SSNIT can be paying till you are 101 years. The liability that SSNIT takes on can increase enormously as long as people are living longer.”
He was of the view that advancement in medical technology is increasing the lifespan of people, adding “people are becoming health conscious and taking care of themselves and people are living longer”.
“So the question then becomes, should we let people contribute a little bit more by gradually shifting the retirement age. In other countries, in the US for example, you don’t get social security until you are 65”, the SSNIT boss alluded.
He further stated that “the question of increasing the retirement age is something that we have to look at. And this is something that you do in the tripartite way where government, employers and labour sit down and discuss”.
SSNIT increases pensioners’ monthly payment by 10%
SSNIT in consultation with the National Pensions Regulatory Authority (NPRA) on Tuesday 11th January, 2022 announced an increased in pensioners monthly payment by 10%. This will take effect from 20th January, 2022.
According to a press release issued by SSNIT, all pensioners “will have their monthly pension increased by a fixed rate of 9.68% plus a redistributed flat amount of ¢3.44.”
The highest earning pensioner as of 31st December, 2021 will receive a payment of ¢142,564.97 every month.
Pensioners receiving a minimum pension of ¢300 as of 31st December, 2021 will have their monthly pensions increased to ¢332.48.
