Pensions payment projected to increase by at least 25% in 2024 – ACRR

The Africa Centre for Retirement Research (ACRR) is projecting an increase in pensions payment for January 2024 which is expected to inch up by at least 25 percent - of the fixed rate - per pensioner.

The Centre in a pensions index issued and signed by its Executive Director, Mashud Abdallah advised that to practically sustain the economic welfare of pensioners, government, represented by the Ministry of Employment and Labor Relations and Pensions together with the NPRA must see to it that SSNIT increases the minimum pensions in January 2024.

It pointed that such a move falls in in line with the current global trends and best Social Security Administration practices.

"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 called on the SSNIT to adopt deliberate and innovative policy measures to improve benefits to low-earners and to slow down the growing socioeconomic gap 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 Centre also called on stakeholders in the pensions sector to ensure that pensions are not reviewed based on discretion or on an ad hoc basis but must be done based on economic development annually and in conformity with provisions of the legislation.

"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.

Read the full statement below:



MA/NOQ