Business News of Wednesday, 12 January 2022
Increasing retirement age would reduce burden on SSNIT, Dr Ofori-Tenkorang
65 years pension age would help SSNIT get more funds, SSNIT DG
People can work for longer years now due to medical advancement, Ofori-Tenkorang
The Director-General of SSNIT, Dr John Ofori-Tenkorang is calling on government and other stakeholders in the employment sector to seriously consider increasing the pension age 65 years.
According to him, the increase has become necessary as the current retirement age of 60 years places more burden on the Trust which has to, on some occasions, pay benefits for over 40 years.
“The question of increasing the retirement age is something that we have to look at. And this is something that you do in the tripartite way where government, employers, and labour sit down and discuss,” he is quoted by Joy Business.
“In theory, SSNIT can be paying till you are 101 years. The liability that SSNIT takes on can increase enormously as long as people are living longer,” he added.
The SSNIT boss further said increasing the pension age would help increase contributions to the pension fund while reducing the burden of the Trust in terms of the number of years of pension payment.
“So, the question then becomes, should we let people contribute a little bit more by gradually shifting the retirement age? In other countries, in the US, for example, you don’t get social security until you are 65,” he pointed.
According to the SSNIT boss, people are now living longer due to the advancement in medical technology as well as to the fact that people have become more health conscious which implies people can work actively for longer years.