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In 2021, the Social Security and National Insurance Trust SSNIT convened and agreed to increase pension benefits by 10%. This rule took effect starting this year, January 2022.

The principle behind this increase is known as indexation. Indexation is the process of ensuring that pensioners retain their purchasing power.

According to Dr. Ofori-Tenkorang, the implementation is so that all beneficiaries receiving low pensions would be receiving more than the 10% increase. He explained that all SSNIT pensioners would have their monthly retirement benefits increased by 9.68% with a redistributed Flat amount of GHc3.44.

The SSNIT applied the redistribute mechanism to ensure that the lowest-earning pensioners were shielded the most. This is in accordance with the principle of solidarity in social security. Essentially, the lowest pensioners receive a 10.83% increase, while the highest-earning receive a 9.639% raise.

Dr Ofori also assured that the SSNIT would continue to invest retirement funds effectively to guarantee pensioners got better returns.

Why the SSNIT needed to increase the pension by 10%

Research conducted projected inflation of about 9.6% in 2022. This meant that if pensioners were to retain their usual monthly benefits. Their purchasing power would drop by 9.6%.

The whole point of having a pension plan is to ensure a comfortable retirement for the benefits. A good pension should allow you to at least live comfortably during retirement. The inflation rate would have rendered this impossible since an increase in inflation would mean less purchasing power and essentially less comfort during retirement.

Therefore, there was a need to set up a mechanism that guaranteed pensioners retain their purchasing power amid the inflation. The 10% increase in benefits fully covers the 9.6% inflation rate and ensures that even as the inflation rate increases, the purchasing power of pensioners remains the same.

In Summary

What other countries can learn from the SSNIT

The biggest takeaway from Ghana’s action for other countries is to put members first. The main aim of social security is to safeguard members. Therefore, they should consistently implement mechanisms that shield members against factors affecting their purchasing power, such as Inflation.

Similar Article: Post-Retirement Tough for Retired Employees in Tanzania

SSNIT: Good News in Ghana as Pension Increases by 10%

In 2021, the Social Security and National Insurance Trust SSNIT convened and agreed to increase pension benefits by 10%. This rule took effect starting this year, January 2022.

The principle behind this increase is known as indexation. Indexation is the process of ensuring that pensioners retain their purchasing power.

According to Dr. Ofori-Tenkorang, the implementation is so that all beneficiaries receiving low pensions would be receiving more than the 10% increase. He explained that all SSNIT pensioners would have their monthly retirement benefits increased by 9.68% with a redistributed Flat amount of GHc3.44.

The SSNIT applied the redistribute mechanism to ensure that the lowest-earning pensioners were shielded the most. This is in accordance with the principle of solidarity in social security. Essentially, the lowest pensioners receive a 10.83% increase, while the highest-earning receive a 9.639% raise.

Dr Ofori also assured that the SSNIT would continue to invest retirement funds effectively to guarantee pensioners got better returns.

Why the SSNIT needed to increase the pension by 10%

Research conducted projected inflation of about 9.6% in 2022. This meant that if pensioners were to retain their usual monthly benefits. Their purchasing power would drop by 9.6%.

The whole point of having a pension plan is to ensure a comfortable retirement for the benefits. A good pension should allow you to at least live comfortably during retirement. The inflation rate would have rendered this impossible since an increase in inflation would mean less purchasing power and essentially less comfort during retirement.

Therefore, there was a need to set up a mechanism that guaranteed pensioners retain their purchasing power amid the inflation. The 10% increase in benefits fully covers the 9.6% inflation rate and ensures that even as the inflation rate increases, the purchasing power of pensioners remains the same.

In Summary

What other countries can learn from the SSNIT

The biggest takeaway from Ghana’s action for other countries is to put members first. The main aim of social security is to safeguard members. Therefore, they should consistently implement mechanisms that shield members against factors affecting their purchasing power, such as Inflation.

Similar Article: Post-Retirement Tough for Retired Employees in Tanzania

In 2021, the Social Security and National Insurance Trust SSNIT convened and agreed to increase pension benefits by 10%. This rule took effect starting this year, January 2022.

The principle behind this increase is known as indexation. Indexation is the process of ensuring that pensioners retain their purchasing power.

According to Dr. Ofori-Tenkorang, the implementation is so that all beneficiaries receiving low pensions would be receiving more than the 10% increase. He explained that all SSNIT pensioners would have their monthly retirement benefits increased by 9.68% with a redistributed Flat amount of GHc3.44.

The SSNIT applied the redistribute mechanism to ensure that the lowest-earning pensioners were shielded the most. This is in accordance with the principle of solidarity in social security. Essentially, the lowest pensioners receive a 10.83% increase, while the highest-earning receive a 9.639% raise.

Dr Ofori also assured that the SSNIT would continue to invest retirement funds effectively to guarantee pensioners got better returns.

Why the SSNIT needed to increase the pension by 10%

Research conducted projected inflation of about 9.6% in 2022. This meant that if pensioners were to retain their usual monthly benefits. Their purchasing power would drop by 9.6%.

The whole point of having a pension plan is to ensure a comfortable retirement for the benefits. A good pension should allow you to at least live comfortably during retirement. The inflation rate would have rendered this impossible since an increase in inflation would mean less purchasing power and essentially less comfort during retirement.

Therefore, there was a need to set up a mechanism that guaranteed pensioners retain their purchasing power amid the inflation. The 10% increase in benefits fully covers the 9.6% inflation rate and ensures that even as the inflation rate increases, the purchasing power of pensioners remains the same.

In Summary

What other countries can learn from the SSNIT

The biggest takeaway from Ghana’s action for other countries is to put members first. The main aim of social security is to safeguard members. Therefore, they should consistently implement mechanisms that shield members against factors affecting their purchasing power, such as Inflation.

Similar Article: Post-Retirement Tough for Retired Employees in Tanzania

In 2021, the Social Security and National Insurance Trust SSNIT convened and agreed to increase pension benefits by 10%. This rule took effect starting this year, January 2022.

The principle behind this increase is known as indexation. Indexation is the process of ensuring that pensioners retain their purchasing power.

According to Dr. Ofori-Tenkorang, the implementation is so that all beneficiaries receiving low pensions would be receiving more than the 10% increase. He explained that all SSNIT pensioners would have their monthly retirement benefits increased by 9.68% with a redistributed Flat amount of GHc3.44.

The SSNIT applied the redistribute mechanism to ensure that the lowest-earning pensioners were shielded the most. This is in accordance with the principle of solidarity in social security. Essentially, the lowest pensioners receive a 10.83% increase, while the highest-earning receive a 9.639% raise.

Dr Ofori also assured that the SSNIT would continue to invest retirement funds effectively to guarantee pensioners got better returns.

Why the SSNIT needed to increase the pension by 10%

Research conducted projected inflation of about 9.6% in 2022. This meant that if pensioners were to retain their usual monthly benefits. Their purchasing power would drop by 9.6%.

The whole point of having a pension plan is to ensure a comfortable retirement for the benefits. A good pension should allow you to at least live comfortably during retirement. The inflation rate would have rendered this impossible since an increase in inflation would mean less purchasing power and essentially less comfort during retirement.

Therefore, there was a need to set up a mechanism that guaranteed pensioners retain their purchasing power amid the inflation. The 10% increase in benefits fully covers the 9.6% inflation rate and ensures that even as the inflation rate increases, the purchasing power of pensioners remains the same.

In Summary

What other countries can learn from the SSNIT

The biggest takeaway from Ghana’s action for other countries is to put members first. The main aim of social security is to safeguard members. Therefore, they should consistently implement mechanisms that shield members against factors affecting their purchasing power, such as Inflation.

Similar Article: Post-Retirement Tough for Retired Employees in Tanzania

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