SSNIT raises pensions by 10% with boost for low-income retirees

The Social Security and National Insurance Trust (SSNIT) has increased monthly pensions by 10 per cent for 2026, with the adjustment designed to provide greater relief for pensioners on lower incomes.

Under the new indexation, all pensioners on the SSNIT Pension Payroll as of December 31, 2025, will receive a fixed increase of six per cent, alongside a redistributed amount of GH¢91.56 drawn from the remaining four per cent.

Announcing the increase at a press conference in Accra last Thursday, SSNIT said the redistribution was intended to cushion low-earning pensioners amid prevailing economic conditions.

The Trust explained that the redistribution mechanism is applied to the indexation rate in line with the solidarity principle of social security, to moderate disparities and ensure more meaningful increases for pensioners at the lower end of the scale.

SSNIT noted that, as a defined benefit scheme, pensions are linked to the salaries on which contributions were paid, making periodic adjustments necessary to help maintain their real value while safeguarding the long-term sustainability of the Fund.

The 2026 indexation rate, SSNIT said, was determined after considering salary growth among active contributors, projected average inflation of 8 ± 2 per cent by the end of 2025, and the overall impact on the Fund’s long-term sustainability.

In consultation with the National Pensions Regulatory Authority and in accordance with Section 80 of the National Pensions Act, 2008 (Act 766), SSNIT indexed monthly pensions upwards by 10 per cent for the year 2026.

With the adjustment, about 70 per cent of pensioners on the payroll are expected to benefit from the full 10 per cent increment or more, due to the redistribution mechanism.

Pensioners who were on the minimum pension of GH¢300 in 2025 will now receive GH¢409 a month, representing an effective increase of 36.52 per cent. Those in the GH¢500 bracket will see their pensions rise to GH¢621.56, an effective increase of 24.31 per cent.

Pensioners earning GH¢2,018 a month will now receive GH¢2,220, reflecting an effective increase of 10 per cent, while those on GH¢5,000 will receive GH¢5,391.56, an effective increase of 17.83 per cent.

The highest pensioner, who previously received GH¢201,792.37, will now earn GH¢213,991.47 a month, representing an effective increase of 6.05 per cent.

Explaining the structure of the increase, the Chief Actuary of SSNIT, Evelyn Adjei, said: “So if you see, those who are receiving more are receiving less effectively than those who are receiving the minimum pension or the lower bracket pension, and that is to help them get more.”

She added that indexation comes with significant costs, noting that the 10 per cent increase would cost an additional GH¢616 million.

Mrs Adjei said Section 80 of the National Pensions Act, Act 766, mandates the Trust to annually review pensions in payment in line with wage inflation or any other rate determined by the Board of Trustees in consultation with the regulator.

“That’s why we do indexation every year. We do is in line with the law,” she said.

The Director-General of SSNIT, Kwesi Afreh Biney, said protecting the value of pensions remained a core responsibility of the Trust.

He noted that with inflation standing at 5.4 per cent as of December last year, the adjustment ensured that pensioners’ incomes were protected against rising prices.

“What that means is that every pensioner on our payrolls pension payments at least has been covered for inflation. Because even for the highest pensioner, it’s about 6%,” he said.

Mr Biney added that lower-income pensioners benefited even more significantly from the adjustment.

“For those on a lower rate, they have gone as high as 36.52%. That’s testament to our commitment to ensure equity, fairness, and to protect those at the lower level. You realise that over 70% of our members are above 10%. What that means is that at an inflation rate of 5.4%, basically, the real growth for each of those factoring inflation is in excess of 5%,” he said.