Africa Center for Retirement Research forecasts 25% increment in pension payments by SSNIT in 2024

The Africa Center for Retirement Research (ACRR) has made a projection indicating a potential 25% increase in pension payments for retirees in Ghana, effective January 2024. This anticipated hike comes in response to the nation’s persistent struggle with soaring inflation rates, which averaged at a staggering 42% as of November 2023.

Abdallah Mashud, the Executive Director of ACRR, elaborated on this forecast, citing the provisions of Act 766 and the longstanding practices of the Social Security and National Insurance Trust (SSNIT).

“Considering the prevailing economic and demographic dynamics in 2023, ACRR anticipates a fixed rate increment of 25% for each pensioner come January 2024,” stated Mr. Mashud.

The envisioned increase seeks to ameliorate the financial challenges faced by retirees grappling with the escalating cost of living. Last year witnessed an inflation rate of 31.47%, prompting a 19% fixed pension increment in 2023. Nevertheless, the accelerating inflationary environment in 2023, averaging 42%, has exacerbated financial strains for pensioners.

Highlighting the imperative for structured and legislatively-aligned pension adjustments, Mr. Mashud emphasized, “It’s paramount that pension reviews transcend discretionary or sporadic evaluations, instead anchoring on consistent economic benchmarks and legislative stipulations.”

Moreover, ACRR advocates for an elevation of the minimum pension payout, presently pegged at GH¢430.58 monthly, which aligns with 60% of Ghana’s national poverty benchmark.

“To fortify the economic well-being of pensioners, collaborative efforts involving the Ministry of Employment and Labour Relations, Pensions, and the National Pensions Regulatory Authority (NPRA) are crucial. SSNIT must recalibrate the minimum pension in January, mirroring contemporary global standards and optimal Social Security Administration paradigms,” urged Mr. Mashud.

ACRR underscores the imperative for intentional policy interventions to augment benefits for financially vulnerable retirees, thereby mitigating disparities between affluent and economically challenged pensioners.

The envisaged 25% pension augmentation for 2024 stands as a pivotal initiative to shield retirees from exacerbated financial pressures amid inflationary surges. ACRR underscores the significance of this increment in addressing systemic inequalities within the pension framework and upholding the economic dignity of retirees.

Source: norvanreports.com