The Social Security and National Insurance Trust (SSNIT) has approved a 10 percent pension indexation for the year 2026.
This decision, reached in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with the National Pensions Act, is intended to balance social protection for retirees with the long-term financial sustainability of the fund.
According to SSNIT, the minimum monthly pension for new retirees has been increased from GH¢300 to GH¢400.
This adjustment aims to lift the floor for monthly payments and skew gains toward low-income pensioners.
Addressing a press conference on Thursday, January 8, 2026, Chief Actuary Mrs. Evelyn Adjei explained that existing pensioners currently on the minimum will see their monthly payments increase to GH¢409.56, representing a significant jump of 36.52 percent.
Mrs. Adjei noted that the indexation framework applies a two-tiered approach. It begins with a uniform six percent increase for all pensioners, which is then supplemented by a redistributed flat monthly amount of GH¢91.56 drawn from the remaining four percent of the overall adjustment.
The redistribution mechanism is specifically designed to deliver higher effective gains to pensioners at the lower end of the scale while keeping increases for higher earners closer to the headline rate.
In determining the 2026 rate, the Trust factored in several macroeconomic and scheme-specific variables, including salary growth among active contributors, a projected average inflation of 8 percent plus or minus two percentage points by the end of 2025, and the long-term financial health of the fund.
Mrs. Adjei stated that redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security.
To illustrate the range of the increase, she noted that the highest-paid SSNIT pensioner, who received GH¢201,792.37 per month as of December 31, 2025, will see their pension rise to GH¢213,991.47 in 2026.
Regarding the fiscal impact, Mrs. Adjei explained that if SSNIT were not to apply an indexation in 2026, it would still be obligated to pay GH¢6.3 billion to those on the payroll. With the new indexation, the Trust will take on an additional expenditure of over GH¢600 million.
The Director General of SSNIT, Mr. Afriyie Biney, described the 2026 indexation as a marked improvement over the previous year, which was characterized by inflation rates exceeding 20 percent.
He highlighted that inflation as of December 2025 had dropped to 5.4 percent, meaning that pensioners on the payroll have effectively recovered their purchasing power. Mr. Biney assured stakeholders that SSNIT remains committed to the scheme’s equity and fairness.
“You will realise that over 70 percent of our members are above 10 percent. What that means is that at an inflation rate of 5.4 percent basically the real growth for each of those is in excess of 5 percent,” Mr. Biney said.
Regarding new retirees, he added, “For the new pensioners who retire with a monthly benefit of Ghc300, that has also been increased to Ghc400 representong a growth rate of 33 percent in era where inflation is at 5.4 percent stressing that it affirms the commitment of SSNIT in protecting those at the lower to ensure sustainability in line with SSNIT’s n protecting the value of pensions paid out to pensioners.”
By: Rainbowradioonline.com/Ghana
