By Kizito CUDJOE & Christabel Danso ABEAM
The Social Security and National Insurance Trust (SSNIT) says it is working to ensure that contributors to the national pension scheme can look forward to improved retirement benefits, with periodic increases to reflect changes in the cost of living.
Key to these efforts is a reassessment of the Trust’s investment approach, according to SSNIT’s Actuarial Manager, Evelyn Adjei who added that they are focused on strengthening their portfolio to boost long-term returns for retirees.
“The current management is looking at what we have, how we can improve those investments, so that we can give people better pensions,” she said.
Ms. Adjei, who was contributing to a plenary discussion on ‘Optimising Effective Pension Management to Promote Sustainable Retirement Income’ at the 2025 Money Summit (TMS) in Accra, pointed out that while SSNIT continues to raise pensions annually, one’s salary during their working years still plays a significant role in determining their retirement income.
“A better pension also depends on one’s salary,” she said. “But SSNIT increases pensions on an annual basis, for retirees to gain back the purchasing power that they had at the time of their first pension.”
That annual adjustment, she explained, aims to cushion retirees against inflation and erosion of value over time.
“Over the years, the studies we’ve done have shown that most pensions increased by more than 100 percent within 5 years or 6 years when you go on pension,” she added.
“People start with a GH₡1,000 and within a short time they get to about GH₡2,000 or GH₡3,000, depending on how fast we can increase it.”
She averred that most workers in the country seem somewhat more concerned about their allowances and other things. Owing to this, she said, they pay their contributions on the basic salary.
“When they go home, they lose all their allowances. But, SSNIT has been doing its best. At the time of retirement, we calculate your pension and tell you how much you will receive. But every year, we increase your pension.”
The SSNIT official disclosed that: “One way of making sure that we increase your pension is by investing,” while noting that “some of our investments have been under attack”. This has led to re-prioritisation of SSNIT’s investments by the current management.
“In the early days, our strong reserves allowed us to raise pensions by up to 85 percent,” she said. “But with more people now drawing pensions, such increases are no longer feasible.”
Ms. Adjei insisted that people are getting better pensions now because they are also on better salaries. “People are retiring on better salaries. So, when they get better salaries they receive better pensions.”
“Your pension is directly tied to your declared salary,” she explained. “Whether it’s GH₡300 or GH₡25,000, that’s the amount we use to calculate your benefits.”
Also contributing to the discussions, Managing Director-Glico Pensions Dr. Francis Sapara-Grant highlighted the critical need for early investment and retirement planning.
He encouraged Ghanaians, especially young professionals, to begin securing their financial future by contributing to pension schemes at the earliest opportunity.
This year’s TMS, an annual event organised by the Business and Financial Times (B&FT), was themed ‘Optimising Investment and Pensions Management: Strategies for Sustainable Retirement Income and Economic Growth’.
TMS 25’s theme underscored the importance of long-term financial planning amid what some people perceive as an unstable retirement system.
Owing to this, Dr. Sapara-Grant noted that being foresighted toward pension planning is key to long-term financial independence and national economic stability.
“Retirement planning management as a whole concept is based on time, because it takes a long time to be able to plan a successful retirement. Retirement has to have several components, including one that can beat inflation and contribute to a stable income.”
Dr. Sapara-Grant further advocated for more investments in other income-generating ventures as a means to boost retirement benefits, indicating that relying solely on traditional pension schemes may not provide enough financial security in the long-term, especially given the rising cost of living and uncertainties in the pensions system.
“Retirement income planning is a combo-solution; you have to have different types of investment instruments around you to make it comprehensive. You do not bank your hopes on a defined pension scheme that tells you what you will be receiving.”
He suggested sustainable strategic investments such as real estate investments, mutual funds, agriculture, annuities, among others, to be able to rely on multiple income streams during retirement.
