Director-General of the Social Security and National Insurance Trust (SSNIT), Kwasi Afreh Biney, has cautioned against any hasty decision to raise Ghana’s retirement age, warning that such a move could significantly delay employment opportunities for young people.
Speaking on Joy News’ PM Express Business Edition, Mr Biney acknowledged that changing demographic trends have strengthened arguments for extending working life beyond the current retirement age, as more Ghanaians are living longer and remaining active well into their sixties.
“I agree that the demographic numbers have shifted rapidly. A lot more people today in Ghana are living longer and are much stronger even after 60,” he stated.
Despite these developments, Mr Biney stressed that decisions regarding retirement policy must take into account a broader range of economic and labour market considerations.
“A decision to extend retirement goes beyond just that. You need to consider factors like your employment rate, unemployment numbers, and availability of jobs,” he said.
His comments come amid increasing debate over whether the retirement age should be extended to allow workers to remain in employment longer before accessing pension benefits. The discussion has gained momentum as many retirees continue to pursue employment opportunities in the private sector after leaving public service.
Mr Biney argued that any decision on the matter should emerge from broad stakeholder consultations rather than be driven by a single institution.
“We all need to come together as stakeholders, deliberate, assess the issues, and arrive at a collective decision rather than an individual institution like SSNIT deciding to move ahead,” he noted.
The SSNIT Director-General also pointed to the pension implications of extending the retirement age. According to him, such a policy would reduce immediate pension payouts while increasing contributions to the pension scheme, potentially strengthening its financial position.
“If you extend the retirement age from 60 to 65 or even 67, what it practically means is that pension payouts will be delayed while more contributions continue to flow into the system,” he explained.
However, he cautioned that any financial gains for the pension scheme must be balanced against the potential consequences for youth employment.
“How do we weigh that against creating another backlog of five to seven years for unemployed young people who could otherwise have entered the workforce?” he asked.
Mr Biney maintained that the issue requires a comprehensive assessment of competing national priorities, including pension sustainability, labour market dynamics and the need to create opportunities for Ghana’s growing youth population.
“We need to examine the data, evaluate the available alternatives, consider the opportunity costs of each option, and then arrive at a well-informed and comprehensive decision,” he said.
