The Director-General of the Social Security and National Insurance Trust (SSNIT), Mr. Kwesi Afreh Biney, has emphasised the importance of conducting comprehensive stakeholder consultations regarding proposals to extend the retirement age beyond 60 years, as stipulated in the pension law.
He stated that any potential implementation would require a thorough examination of the benefits and challenges that may arise.
Since 1992, Ghana’s compulsory retirement age has been set at 60 years, although some individuals have suggested increasing it to 65 years.
According to the pensions law, workers are eligible for full pension at 60 years of age (55 years for those working under hazardous conditions) with at least 180 months (15 years) of contributions.
Additionally, an early pension option is available to workers from the age of 55 years with the same contribution requirement.
Commenting on the proposal to increase the retirement age, Mr. Afreh Biney noted that without careful consideration, this could exacerbate the country’s unemployment challenges.
During the commissioning of SSNIT’s 53rd branch in Adenta, he explained that raising the retirement age could prevent younger individuals from entering the workforce, thereby increasing unemployment rates.
He highlighted that countries that have increased their retirement age often have fewer contributors to their schemes or lower population growth rates.
“If Ghana chooses to adopt this proposal, it must also examine its employment and unemployment rates, as a high unemployment rate combined with an increased retirement age would pose significant challenges. While increasing the retirement age might ensure the stability of the fund, expanding operations to include more contributors would also contribute to the fund’s stability.”
Mr. Biney concluded that a thorough dialogue is necessary to determine the potential benefits of increasing the retirement age.
By: Rainbowradioonline.com/Ghana
