Section 80 of the National Pension Act, 2008 (Act 766) supplies for annual adjustment of pensions in fee via the Social Security and National Insurance Trust (SSNIT), in session with the National Pension Regulatory Authority (NPRA).

In follow, the SSNIT and the NPRA agree on what’s termed the ‘Overall Rate’ of increment in pensions. Given the whole indexation price, a ‘Fixed Rate’ of building up for each and every pensioner and an similarly allotted ‘Flat Amount’ are made up our minds.

The Fixed Rate of building up is in large part value inflation dependent, while the ‘Flat Amount’ is a redistributive issue that is thought of as as a poverty aid measure for deficient or low-earning pensioners.

For 2026, pensions had been adjusted at an total price 10%, a Fixed Rate of 6%, and a Flat quantity of GHS91.56.

The Africa Center for Retirement Research (ACRR) is especially thinking about the truth that the Minimum Pension has been higher in 2026. The Minimum Pension is going up via 33%, this is, from GHS300.00 to GHS400.00.

Historically, the Minimum Pension had constantly higher each and every 12 months from the 12 months 2000 till 2017 and 2018. In 2019, it was once reviewed from GHS276.00 to GHS300.00. Despite being a poverty aid income for deficient pensioners, the Minimum Pension were given caught at GHS300.00 for seven (7) years (2019-2025).

Note that the minimal pension is crucial poverty aid provision that has discovered area within the International Labor Organization’s minimal requirements. It is due to this fact thrilling that it was once reviewed upward via 33% (from GHS300.00 to GHS400.00).

Another necessary aid measure for deficient pensioners is the redistributive issue expressed because the Flat Amount. The 2026 pension indexation awarded a Flat Amount of GHS91.56. This is thought of as extremely vital. In reality, it’s the perfect redistributive issue within the closing 36 years.

How does the 2026 increment in pensions have an effect on the buying energy of pensioners?

The value inflation averaged 14.63% in 2025, and because of this retirees misplaced 14.63% in their buying energy closing 12 months, which ought to get replaced in 2026. Now the Social Security Administration has awarded a hard and fast price of 6% and a flat quantity of GHS91.56. If you do the mathematics, you to find that the common pension of GHS1,000.00, which misplaced 14.63% of its buying energy, has been absolutely changed in 2026.

In addition, value inflation, in most cases, has assumed a downward pattern (lately at 5.4% as of December 2025), and may have an effect on the residing requirements of Ghanaian pensioners.

Overall Assessment of the 2026 Pension Indexation

On the entire, taking a look on the figures, and purely from a technical and coverage viewpoint, there’s a transparent and planned try to get a excellent steadiness between paying excellent advantages and being conscious of the long-term monetary integrity of the scheme.

The price of increment within the minimal pension and the price of the redistributive issue (Flat Amount) are sufficient to conclude that the Social Security Administration has reinforced the scheme’s poverty aid mechanisms.

This is commendable as it conforms to international indexation patterns of that specialize in the revenue safety of deficient or low-earning pensioners. As the Executive Director of the ACRR, and according to the foregoing, I can describe this 12 months’s pension adjustment as a accountable and people-centered indexation. I accept as true with that may resonate neatly with all pensioners around the nation.

Other Policy Issues Worth Considering

Despite the Social Security Administration’s try to supply extra monetary coverage for low-income pensioners whilst keeping up the scheme’s monetary integrity, many pensioners are upset with this 12 months’s building up. A pattern of 150 pensioners ACRR spoke to printed that 78.7% (just about 4 out of five) of the respondents have assessed the increment as insufficient.

This lends extra credence to the ACRR proposal to undertake a means-testing scaling to pension indexation in Ghana.

The means-testing scaling means that as a substitute of awarding an Equal Fixed-Rate Increment to all pensioners (privileged and deficient), the federal government and stakeholders will have to believe a pension evaluate style that varies the Fixed-Rate, such that prime per thirty days pension-earners obtain a quite decrease Fixed-Rate in comparison to low per thirty days pension-earners.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made via Readers and Contributors in this platform don’t essentially constitute the perspectives or coverage of Multimedia Group Limited.