SSNIT must be stopped from selling its long-term assets - Ricketts-Hagan

SSNIT cautioned against selling its long assets

Ricketts-Hagan gives solutions on how SSNIT can become a strong financial institution

SSNIT current model will in the near future not be sustainable, former Deputy Finance Minister

Member of Parliament for Cape Coast South, Kweku George Ricketts-Hagan has advised Social Security and National Insurance Trust (SSNIT) to invest their funds to revamp its long-term asset rather than selling it.

According to him, if the funds are well invested and selected, it will yield the desired returns needed to sustain pension payouts of retired workers.

Presenting a statement on the floor of parliament on the state of pension in Ghana: the case of SSNIT, the MP said, "Mr Speaker, these long-term projects, if well-selected and well invested in, will yield the desired returns needed to sustain pension payouts of our retired workers.”

“The people who are working today, are paying the bulk of the pension benefits of those who have retired but as people live longer, well into their old age and less and less people are entering the formal workforce due to rising unemployment, the SSNIT current model will in the near future not be sustainable. SSNIT will therefore have to grow long term assets faster than it is doing at the moment, to fill the gap.”

“Therefore Mr. Speaker, SSNIT should be discouraged from selling its Long-term assets and be encouraged to invest the funds to revamp its long-term assets.” he added.

He also indicated that for SSNIT to become a solid financial institution, it needs to review its entire investment portfolio and strategy of its asset allocation and also desist from divesting its major assets at discounted prices.

“Mr. Speaker, for SSNIT to continue to be a healthy solid financial institution in the pension’s space, it need needs to review its entire investment portfolio and strategy of its asset allocation, invest in key long term strategic assets, stop divesting its major assets at discounted prices and Investments should be guided by among other things safety, capital preservation and liquid” he said in parliament on March 8, 2022.