By Enoch 
The Social Security and National Insurance Trust (SSNIT) has announced a 12% increase in monthly pensions for 2025, following consultations with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act, 2008 (Act 766). The increment, effective January 2025, applies to all pensioners on SSNIT’s payroll as of December 31, 2024.
A Boost for Pensioners
The adjustment comprises an 8% fixed rate and an additional flat amount of GH¢72.58, representing a redistribution of the remaining 4% to cushion low-earning pensioners. According to SSNIT, the increment will range from 32.19% for low-income pensioners to 8.04% for higher earners. This redistribution mechanism aligns with the solidarity principle of social security, ensuring that the minimum monthly pension of GH¢300 in 2024 rises to GH¢396.58 in 2025.
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Impact on Pensioners
The highest-earning pensioner under PNDC Law 247 will receive GH¢201,792.37 per month in 2025, reflecting an 8.04% increase. Meanwhile, the average monthly pension will rise from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025. Approximately 63% of pensioners – those earning GH¢1,814.50 or less monthly – will benefit from effective increases between 12% and 32.19%.
SSNIT’s Commitment
SSNIT’s management emphasized that the indexation process is designed to ensure equity while addressing the needs of the most vulnerable pensioners. The Trust highlighted its commitment to providing regular monthly payments and conducting annual reviews in adherence to its legal mandate. “We are dedicated to ensuring that pensioners receive their benefits on time and in line with inflationary trends,” the statement added.
Broader Implications
The increment comes as a relief to pensioners, particularly those in the lower-income bracket, who will see the most significant percentage gains. It also underscores SSNIT’s ongoing efforts to align pension adjustments with economic realities. The Trust highlighted its commitment to providing regular monthly payments and conducting annual reviews in adherence to its legal mandate.
Financial Stability and Long-Term Sustainability
The increase in monthly pensions is also aimed at ensuring financial stability for pensioners in the face of rising living costs. By adjusting the pension payments to reflect inflation and wage increases, SSNIT aims to protect the purchasing power of pensioners. The Trust’s approach is to balance immediate financial needs with long-term sustainability, ensuring that the pension scheme remains viable for future generations.
Enhancing Pensioners’ Quality of Life
The additional income from the increased pension payments is expected to significantly enhance the quality of life for many pensioners. It will help cover essential expenses such as healthcare, housing, and daily living costs. This increase demonstrates SSNIT’s dedication to improving the well-being of retirees who have contributed to the nation’s workforce throughout their careers.
Future Outlook
Looking ahead, SSNIT is committed to continuously reviewing and adjusting pensions to align with economic conditions. The Trust plans to implement measures that will further strengthen the pension system, including investment strategies to ensure the long-term sustainability of the fund. By maintaining a proactive approach, SSNIT aims to provide a reliable safety net for current and future pensioners.
Last Words…
The 12% increase in monthly pensions is aimed at helping pensioners maintain their standard of living. Pension payments will continue to be made on the third Thursday of every month. This adjustment reflects SSNIT’s dedication to ensuring that pensions remain sustainable while reflecting wage inflation and the prevailing economic conditions.
SSNIT’s commitment to fairness and equity in pension adjustments is a positive step towards ensuring financial security for retirees. As the organization continues to enhance its services and support for pensioners, the overall well-being of Ghana’s retired population is expected to improve.