In Ghana today, pensioners face indignity in retirement: no cost-of-living allowance, no inflation-indexed increases, and shrinking benefits that erode their livelihoods. Meanwhile, executives enjoy perks while elders struggle to survive. This injustice demands urgent reform. To restore dignity and align with international social security standards, Act 766 must be amended without delay. Pension justice is not charity — it is a right, and Ghana must rise to meet it.

The Crisis of Pensioner Welfare
Retirement should be a season of dignity, not despair. Yet across Ghana, thousands of pensioners live in hardship, denied the basic respect of a Cost of Living Allowance (COLA) or inflation-indexed benefits. While SSNIT executives enjoy perks and allowances, the very people who built this nation are left to starve on stagnant pensions. This is not just unfair—it is a moral failure.

The Legal Gap
Under the current National Pensions Act (Act 766), SSNIT is mandated to pay pensions based on contributions and formulas, but there is no provision for COLA or automatic inflation adjustments. This omission erodes the purchasing power of retirees year after year, especially during periods of high inflation. The law must be amended immediately to protect pensioners from economic shocks.

International Comparative Standards
Ghana is not alone in facing pension challenges, but other nations have taken bold steps to safeguard retirees:

• South Africa: Pensions are periodically adjusted to inflation, ensuring retirees maintain basic living standards.
• Kenya: The government reviews pensions annually, linking adjustments to cost-of-living indices.
• United Kingdom: The “triple lock” system guarantees pensions rise by the highest of inflation, wage growth, or 2.5%.
• Canada: Benefits are indexed monthly to the Consumer Price Index (CPI), protecting retirees from inflationary erosion.

These models prove that inflation-indexed pensions are both possible and sustainable when backed by strong governance and transparent fund management.

Read more @ModernGhana