10% Pension Increase Not Enough for Retirees – SSNIT Pensioners Demand Living Wage

Published: January 10, 2026

Introduction

Retirees in Ghana are raising their voices over what they describe as an insufficient 10% pension increase for 2026. The Concerned SSNIT Pensioners Forum (CSPF) has criticized the Social Security and National Insurance Trust’s (SSNIT) latest adjustment, calling it inadequate to meet the rising cost of living. With many pensioners struggling to afford basic needs like food and medicine, the demand for a minimum living pension has become urgent. This article explores why the current increase falls short, what retirees are asking for, and how policymakers can address this growing issue.

Key Points

SSNIT announced a 10% pension increase for 2026, but retirees say it’s not enough.
The CSPF wants the minimum monthly pension raised to GH¢600 to reflect living costs.
Pensioners argue that percentage increases alone are meaningless without a guaranteed minimum.
Many retirees live below the poverty line, unable to afford healthcare or food.
The Forum calls for a national minimum pension policy similar to the national minimum wage.
Transparency in pension calculation and annual indexation is also demanded.

Background

The Current Pension System in Ghana

Ghana’s pension system, managed by SSNIT, provides retirement benefits to workers who have contributed during their working years. The Trust adjusts pensions annually based on inflation and economic performance. In 2025, the minimum monthly pension was set at GH¢396.58, while new pensioners were expected to receive around GH¢400 to GH¢409.56 after indexation and redistribution.

Rising Cost of Living

Over the past few years, Ghana has experienced significant inflation, particularly in food, healthcare, and housing. The cost of living has outpaced pension increases, leaving many retirees in financial distress. According to the CSPF, some pensioners on the current minimum cannot afford basic medicine and rely on family support for survival.

Previous Advocacy Efforts

In November 2025, the CSPF submitted a petition to SSNIT, the Ministry of Finance, and the Ministry of Employment and Labour Relations. The petition called for a minimum pension of GH¢600 and a 15-20% average increase for all pensioners. The Forum also requested a review of the annual indexation formula to prevent further erosion of pension value.

Analysis

Why 10% Is Not Enough

A 10% increase may sound reasonable, but it does not address the real purchasing power of retirees. If a pensioner receives the minimum of GH¢396.58, a 10% increase adds only about GH¢39.66 per month. This amount is insufficient to cover the rising costs of food, medicine, and utilities. Moreover, retirees often face higher healthcare expenses as they age, which are not reflected in the current adjustment.

The Gap Between Policy and Reality

The CSPF has pointed out inconsistencies in SSNIT’s public statements. In January 2025, SSNIT announced that the minimum pension would rise from GH¢300 in 2024 to GH¢396.58 in 2025. However, in January 2026, the Trust stated that new pensioners would receive GH¢400, with some getting up to GH¢409.56. This confusion has led to questions about what truly constitutes a “minimum pension” in Ghana.

Pensioner Poverty and Social Impact

Many retirees in Ghana live in poverty, unable to meet basic needs. This situation affects not only the elderly but also their families, who often bear the financial burden of supporting them. Elderly poverty can lead to malnutrition, untreated medical conditions, and social isolation. Without a living wage, retirees cannot maintain dignity in their later years.

The Need for a National Minimum Pension

The CSPF draws a parallel between the national minimum wage and the need for a national minimum pension. Just as workers have a legal right to a minimum wage, retirees should have a guaranteed minimum pension that allows them to live with dignity. This policy would ensure that no retiree falls below a basic standard of living, regardless of their contribution history.

Practical Advice

For Policymakers

Adopt a national minimum pension policy set at a living wage level (e.g., GH¢600 per month).
Review and reform the annual indexation formula to better reflect inflation and cost of living.
Ensure transparency in pension calculations and communicate clearly with retirees.
Engage in inclusive dialogue with pensioner associations, labor groups, and civil society.
Consider the long-term sustainability of the pension system while protecting retirees.

For Retirees and Families

Stay informed about pension rights and policy changes.
Join or support pensioner advocacy groups like the CSPF.
Plan for healthcare costs in retirement through savings or insurance where possible.
Participate in public consultations on pension reforms.
Seek assistance from social welfare programs if eligible.

For Employers and Contributors

Ensure timely payment of SSNIT contributions for employees.
Support policies that strengthen the pension system for future retirees.
Encourage financial literacy and retirement planning among workers.

FAQ

What is the current minimum pension in Ghana?

As of 2025, the minimum monthly pension is approximately GH¢396.58. New pensioners may receive around GH¢400 to GH¢409.56 after indexation and redistribution.

Why are pensioners demanding a minimum of GH¢600?

The CSPF argues that GH¢600 is the minimum amount needed to cover basic living costs, including food, medicine, and utilities, in today’s economic climate.

What is the difference between a percentage increase and a minimum pension?

A percentage increase applies to the current pension amount, so low-income pensioners receive only a small absolute increase. A minimum pension guarantees a baseline income for all retirees, regardless of their previous contributions.

How does inflation affect pensioners?

Inflation reduces the purchasing power of fixed incomes. If pensions do not keep pace with rising prices, retirees can afford fewer goods and services over time.

What role does SSNIT play in pension adjustments?

SSNIT is responsible for managing contributions, calculating benefits, and recommending annual pension adjustments based on economic indicators. Final approval for adjustments typically involves the government.

Can retirees appeal pension decisions?

Yes, retirees can seek clarification or appeal decisions through SSNIT’s customer service channels or by engaging with pensioner advocacy groups.

Conclusion

The 10% pension increase for 2026 is a step in the right direction, but it does not go far enough to address the real challenges faced by Ghana’s retirees. With rising living costs and stagnant pension values, many elderly citizens are forced to live in poverty. The Concerned SSNIT Pensioners Forum’s call for a minimum living pension of GH¢600 is not just a demand for more money—it is a call for dignity, respect, and social justice.

Policymakers must act now to establish a national minimum pension policy that ensures no retiree lives below the poverty line. This requires transparent calculations, inclusive dialogue, and a commitment to long-term sustainability. Retirees have contributed to Ghana’s development throughout their working lives; they deserve to live with security and dignity in their golden years.

As inflation continues to rise and healthcare costs increase with age, the need for a living pension becomes more urgent. The time for action is now. By adopting a fair and sustainable pension system, Ghana can honor its retirees and build a more just society for all.