The Africa Centre for Retirement Research (ACRR) foresees a rise in pensions payments come January 2024, with an expected increase of at least 25%, based on the fixed rate, per pensioner.
In a pensions index released by its Executive Director, Mashud Abdallah, the Center emphasized the importance of increasing minimum pensions in January 2024 to sustain the economic well-being of pensioners.
ACRR urged the government, represented by the Ministry of Employment and Labor Relations and Pensions, along with the NPRA, to work towards this enhancement in line with prevailing global trends and best practices in Social Security Administration.
“As you may recall, price inflation averaged 31.47% in 2022 and each pensioner was awarded a fixed rate 19% in 2023. Price Inflation averages 42% as at November 2023.
Based on the provisions of Act 766, and the practice of SSNIT over the years, coupled with the economic and demographic trends in 2023, ACRR is projecting that pensions in payment could increase by at least a Fixed Rate of 25% for each Pensioner in January 2024,” the Centre explained.
It therefore urged the SSNIT to enact thoughtful and creative policy measures to enhance low-earners’ benefits and to mitigate the widening socioeconomic divide between the rich and the poor.
“Generally, if the level of benefits provided by a pension system is insufficient in terms of minimum living standards, or are not deliberately designed to protect the poor, the efforts to reduce old age poverty will be jeopardized,” the ACCR pointed.
The Center also urged those involved in the pension industry to make sure that reviews of pensions are conducted annually in accordance with legal requirements and not at the whim of the government or on an as-needed basis.
“In particular and as best practices require, pension increment rates must be in lock-step with the general changes in prices of goods and services (inflation). This will guarantee that the socio-economic well-being of retirees is sustained,” it concluded.