Over 90% of pensioners earn less than GH¢5,000 monthly - Paul Mante

The Managing Director of EDC Investment Ltd., Paul Kofi Mante, has expressed concern over the current state of pensions in Ghana.

According to him, only about 10% of Ghanaians are enrolled in pension schemes.

He noted that many Ghanaians who are subscribed to SSNIT earn less than GH¢5,000 as a monthly pension.

Mante emphasised the importance of individuals taking personal responsibility to invest in their future in order to secure a better quality of life after retirement.

Speaking on the sidelines of the Business and Financial Times–Ecobank Money Summit, he stated, “Over 90% of people who are on pension at the moment are receiving less than 5,000 cedis a month. But my biggest worry is the fact that we should have about 2 million people over the age of 60. Yet, the number of people currently on the SSNIT pension is less than 300,000. So the question we need to ask is: what happens to the remaining 1.7 million people who are not on the SSNIT pension?”

The Money Summit was held under the theme, "Optimising Investment and Pensions Management: Strategies for Sustainable Retirement Income and Economic Growth."

According to Mante, several factors prevent people from investing, with low salaries being one of the major challenges.

However, he stressed that despite these obstacles, it is crucial to invest in a more secure financial future.

“One of the reasons why it’s important to invest is to prepare for old age. In the session, we discussed a number of issues, such as low monthly pension payments in many developing countries, including Ghana,” he said.

“We also talked about longer life expectancy. People are living longer than before. So if the retirement age is 60, you could easily live until 85 or even 90, that’s up to 30 years without a regular monthly income. And children should be seen as a responsibility, not as a retirement plan.”

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