The Social Security and National Insurance Trust (SSNIT) has reaffirmed its commitment to Ghanaian retirees by disbursing GH₵510.21 million in pensions for January 2025.
This payout, made on January 16, 2025, benefited 253,601 pensioners, marking a significant step in ensuring the financial security of retired workers across the country.
This amount reflects a 12% increase in monthly pensions, introduced as part of SSNIT’s annual indexation process for 2025. The adjustment was made in close consultation with the National Pensions Regulatory Authority (NPRA) and in compliance with Section 80 of the National Pensions Act, 2008 (Act 766).
This law mandates annual adjustments to pensions, ensuring they remain in line with economic realities and inflationary pressures.
The January 2025 disbursement showcased significant disparities in pensions. Under PNDC Law 247, the highest monthly pension stood at GH₵201,792.37, while the lowest for existing pensioners was GH₵396.58. Meanwhile, under Act 766, the highest monthly pension was GH₵28,703.01, with the minimum for new pensioners set at GH₵300.
When compared to December 2024, the new figures illustrate an upward adjustment across the board. In December, SSNIT disbursed GH₵454.05 million to 252,766 pensioners, with the highest pension under PNDC Law 247 being GH₵186,777.58, and the lowest at GH₵409.10. For Act 766 pensions, the highest was GH₵26,506.66, and the minimum remained at GH₵300.
The steady increase in both the total amount disbursed and the number of beneficiaries highlights SSNIT’s dedication to fulfilling its mandate of providing reliable and timely support to pensioners.
Ensuring Timely Payments
In addition to the recent increment, SSNIT has scheduled the next pension payment for February 20, 2025, reflecting its consistency in meeting the needs of pensioners. This reliability is crucial, as retirees often depend solely on their pensions for sustenance.
Speaking on the importance of retirement planning, SSNIT emphasized the need for all workers to insure their full earnings with the Trust. This ensures a lifetime pension that adequately reflects their earnings, securing their financial well-being post-retirement.
Meanwhile, the 12% increment is a positive move, particularly in the current economic climate, where inflation and cost of living increases have strained household budgets. By increasing pensions, SSNIT has not only enhanced the purchasing power of retirees but also contributed to sustaining their quality of life.
The GH₵510.21 million disbursed in January also reflects the broader economic impact of pension payments. Pensioners contribute significantly to the economy through their spending, which supports various sectors, including healthcare, retail, and housing.
Compliance with Act 766
SSNIT’s compliance with Section 80 of the National Pensions Act, 2008 (Act 766), underscores its commitment to adhering to regulatory standards. The Act provides a legal framework for the management of pensions, ensuring that retirees receive fair and consistent support.
The collaboration between SSNIT and the NPRA in determining the annual indexation highlights the importance of oversight in the pension industry. This partnership ensures that adjustments are data-driven and aligned with economic indicators.
The Trust has also used the opportunity to encourage active workers to secure their retirement by insuring their full earnings with SSNIT. This advice is particularly important for workers in the informal sector, many of whom remain unregistered with the Trust.
By contributing to SSNIT, workers can ensure a guaranteed income during retirement, mitigating the risks associated with financial insecurity in old age. The Trust’s lifetime pension promise provides peace of mind, allowing retirees to focus on enjoying their golden years without undue financial stress.
As SSNIT continues to deliver on its mandate, the Trust’s message is clear: retirement planning is a shared responsibility between the Trust and Ghana’s workforce. Workers must prioritize registering their full earnings, while the Trust must continue to uphold its commitment to timely and adequate pension payments.
With the next payment scheduled for February 2025, SSNIT has set a standard for reliability and efficiency, reinforcing its role as a cornerstone of financial security for Ghanaian retirees.
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