By Alex Ababio | Ghanaian Watch
THE MAN WHO BUILT THE ROADS
Kwame Asante, 68, sits on the veranda of his two-bedroom house in Ashaiman, a sprawling settlement east of Accra. His hands, gnarled from decades of manual labour, rest on a walking stick. For thirty-four years, Asante worked as a road maintenance supervisor for the Ghana Highway Authority. He contributed diligently to the Social Security and National Insurance Trust (SSNIT), never missing a monthly deduction. He retired in 2019.
Today, his monthly pension is GH¢620. After rent, electricity, and water, he is left with approximately GH¢280. His hypertension medication costs GH¢180 per month. His wife’s diabetes medication costs GH¢150. “I contributed for thirty-four years,” Asante says, his voice steady but weary. “The system has failed me. My children send money sometimes, but they have their own families. I don’t know how I am still alive.”
Asante is not an outlier. He represents a systemic failure that has left an entire generation of Ghanaian workers facing retirement not as a season of rest, but as a slow battle for survival.
THE NUMBERS THAT TELL THE STORY
Of the over 2 million Ghanaians aged 60 and above, fewer than 300,000 are enrolled in the SSNIT monthly pension scheme. That translates to a coverage rate of just 5 per cent—leaving 95 per cent of older Ghanaians without any formal pension income whatsoever.
The regional disparity is staggering. According to World Bank estimates based on the Ghana Living Standards Survey 2016/17, SSNIT pension coverage rates for those aged 60 and above range from 0.2 per cent in the Northern Region to 14 per cent in Greater Accra. The Northern Region’s coverage rate of 0.2 per cent means that fewer than 1 in 500 older persons in the region receives a SSNIT pension.
HelpAge International’s Pension Watch database confirms the scale of the crisis: total pension coverage—including contributory and non-contributory schemes—reaches only 15.7 per cent of people aged 60 and older. Ghana does not currently have a social pension.
Paul Kofi Mante, Managing Director of EDC Investment Limited, captured the crisis with clinical precision at the 2025 Money Summit organised by the Business and Financial Times. “This is a national crisis we can no longer ignore,” Mante stated. “We’re talking about a system where only a fraction of our elderly population is covered, and even for those who are, 96 per cent are living on GH¢5,000 or less. That’s not retirement security—that’s a ticking time bomb”.
THE HUMAN COST
The statistics mask a deeper human tragedy. Across Ghana, pensioners who contributed faithfully to the system for decades now survive on stipends that often cannot cover basic necessities.
The Concerned SSNIT Pensioners Forum (CSPF) has documented the reality of pensioner poverty with devastating clarity. In a press release dated January 10, 2026, the Forum rejected SSNIT’s 10 per cent pension indexation as insufficient to address the worsening economic hardship confronting pensioners. The CSPF highlighted that the 2025 minimum monthly pension of GH¢396.58 was “grossly inadequate,” stating that the amount could barely cover medication costs for many pensioners, forcing them to depend on family members and others for survival.
“The annual increments are detached from the lived reality of pensioners,” the CSPF statement read, adding that many retirees remain trapped in poverty despite yearly increases.
For some pensioners, the despair has curdled into something darker. “It appears SSNIT is deliberately paying low pensions to facilitate our early death,” one pensioner told Modern Ghana in November 2025. The publication noted that the statement, while shocking, “painfully captures the feeling of abandonment among thousands of Ghanaian retirees”.
The Modern Ghana investigation documented the “Pensioner’s Paradox”: in theory, pensions are meant to guarantee dignity after work. In Ghana, they have become a sentence to hardship. “Many pensioners receive monthly payments so low they can barely cover rent, transport, or medical bills. For some, the pension is consumed entirely by medication before the month even begins”.
A 2026 study published in the Journal of Cross-Cultural Gerontology examined 437 SSNIT pensioners in Greater Accra and found they had “at best a moderate social, physical, psychological, and environmental quality of life.” The study recommended “policy actions aimed at enhancing pension adequacy, strengthening social support and community engagement opportunities, and improving access to health and welfare services.”
THE SYSTEMIC FAILURES
Ghana’s pension system is governed by the National Pensions Act 2008 (Act 766), which established a three-tier structure. Tier 1 is the mandatory basic national social security scheme managed by SSNIT, providing monthly pensions. Tier 2 is a mandatory occupational pension scheme managed by private trustees. Tier 3 is a voluntary provident fund and personal pension scheme designed for informal sector workers.
The fundamental flaw is structural: the system was designed for formal sector employment, yet the informal sector accounts for over 80 per cent of Ghana’s workforce. Only 0.85 per cent of informal sector workers are covered by SSNIT—a figure that highlights the gap between registration and actual coverage.
A World Bank study titled “Social Protection Programme Spending and Household Welfare in Ghana” revealed a chronic problem: the government owes over GH¢3 billion to SSNIT for employee premiums accumulated over the last decade. This debt has decreased SSNIT’s investment earnings and threatens its ability to pay future pensions. The report suggested that funding a universal pension may be unfeasible without fair premium payments from new members.
The system’s inadequacy is compounded by broader economic realities. “Low income today equals low pension tomorrow,” Mante noted, highlighting how low wages during working life translate directly into meagre pensions. He also raised a demographic challenge that policymakers have yet to confront: “People are living longer, but without adequate financial buffers. Retiring at 60 and living till 90 means 30 years without a salary. How are we preparing for that?”.
THE GLOBAL CONTEXT
Ghana’s pension crisis must be understood in the context of broader African experience. Across sub-Saharan Africa, only 19.8 per cent to 22.7 per cent of people aged 60 and older receive a pension (contributory or non-contributory), compared to the global average of 77.5 per cent. Ghana’s coverage rate of 5 per cent is among the lowest on the continent.
Several African countries have implemented models that offer instructive lessons.
South Africa operates a means-tested Old Age Grant from age 60, set at 25 per cent of GDP per capita and 592 per cent of the poverty line. The programme costs 1.14 per cent of GDP and covers 7.3 per cent of the population aged 60 and above. The World Bank classifies South Africa as having a “near universal non-contributory pension” alongside civil service and occupational schemes.
Kenya has implemented a universal social pension for citizens aged 70 and above, providing approximately US$20 per month. This is a reliable income in older age, though the benefit level remains modest. Kenya’s approach demonstrates that universal coverage is administratively feasible even in countries with large informal sectors.
Rwanda has made significant strides in extending pension coverage to the informal sector through its Ejo Heza scheme—a voluntary, long-term savings scheme designed for informal workers. The International Social Security Association notes that “in Rwanda, the formal-sector pension administrator is also the central administrator of the informal-sector pension scheme, which involves matching contributions from the Government.”
Mauritius and Namibia have achieved universal pension coverage through a mix of contributory and non-contributory programmes. Mauritius provides a universal pension from age 60 at 15 per cent of GDP per capita, costing 1.70 per cent of GDP. Namibia provides a universal pension from age 60 at 16 per cent of GDP per capita, costing 1.36 per cent of GDP.
The comparative evidence demonstrates that universal or near-universal social pensions are feasible at costs ranging from 0.33 per cent to 1.77 per cent of GDP. Ghana’s current absence of a social pension is an outlier among middle-income African countries.
THE POLICY RESPONSE
In 2026, SSNIT announced a 10 per cent increase in monthly pensions for all 261,920 pensioners on its payroll as of December 31, 2025. The minimum monthly pension for new pensioners increased from GH¢300 to GH¢400, representing a 33.3 per cent rise. Pensioners currently on the minimum of GH¢300 would receive GH¢409.56 following the 2026 indexation and redistribution.
But the CSPF dismissed the increase as inadequate. The Forum had formally petitioned SSNIT on November 19, 2025, calling for the minimum monthly pension to be raised to GH¢600 and an average pension increase of 15 to 20 per cent for 2026. The petition was copied to the Minister for Finance, the Minister of Employment and Labour Relations, and the Chief Executive Officer of the National Pensions Regulatory Authority.
The CSPF has called for Ghana to adopt a national minimum pension policy, similar to the national minimum wage, to guarantee retirees a dignified standard of living. The Forum is demanding an urgent and inclusive national dialogue involving SSNIT, policymakers, organised labour, pensioner associations, economic planners, and civil society organisations to establish a sustainable and realistic minimum pension benchmark.
There are signs of political momentum. President Mahama has instructed the Minister of Finance to oversee a thorough review of Ghana’s pension structure, with the aim of expanding coverage, especially for informal sector workers. The National Pensions Regulatory Authority (NPRA) has proposed a joint initiative with the National Health Insurance Authority to link a new micro-pension scheme for informal sector workers to automatic enrolment in the NHIS.
THE RIGHT TO SOCIAL SECURITY
The right to social security is enshrined in Article 22 of the Universal Declaration of Human Rights and Article 9 of the International Covenant on Economic, Social and Cultural Rights. However, these instruments do not specifically address the situation of older persons, and their implementation has been uneven.
The UN Intergovernmental Working Group on the Rights of Older Persons, established in April 2025, presents a historic opportunity to address this gap. In July 2027, the working group will meet to discuss an outline of the treaty’s content. In November 2027, the Chair will present a first draft.
Ghana’s experience—with its 5 per cent SSNIT coverage, absence of a social pension, and 96 per cent pensioner poverty rate—offers critical lessons for the treaty drafting process. Contributory systems alone are insufficient. Social pensions are necessary. Adequacy matters. Regional equity is essential.
The treaty must recognise that the right to social security includes not merely the existence of a pension system, but the guarantee of an adequate income that enables older persons to live in dignity. It must establish minimum standards for pension coverage and adequacy. And it must include monitoring mechanisms to hold governments accountable.
WHAT MUST BE DONE
The recommendations are clear and urgent.
First, Ghana must introduce a universal social pension for all citizens aged 65 and above, building on comparative models from South Africa, Kenya, Mauritius, and Namibia. The benefit should be set at a level sufficient to cover basic living expenses, with a phase-in period beginning at age 75 and gradually reducing to 65.
Second, LEAP must be expanded to reach all older persons living in extreme poverty, with automatic enrolment for those aged 65 and above without pension coverage. Benefit levels must be increased to reflect the true cost of basic needs, including medication.
Third, the three-tier pension scheme must be reformed to mandate informal sector enrolment and simplify registration processes. Mobile money platforms should be leveraged to enable daily, weekly, or monthly contributions. The government should provide matching contributions for low-income informal sector workers.
Fourth, the minimum monthly pension must be raised to a living wage level—at least GH¢600—indexed to inflation. A National Pension Guarantee Fund should be established to ensure minimum income security for all older persons.
Fifth, the government must pay its debt to SSNIT. The over GH¢3 billion owed to the Trust represents a betrayal of every worker who contributed faithfully to the system. These funds must be recovered and invested to secure the pensions of current and future retirees.
CONCLUSION
Kwame Asante’s veranda remains the same. The walking stick still rests against the wall. The medication still costs more than he can afford. But his story—and the stories of 1.7 million other older Ghanaians without pensions—is now part of a larger conversation.
The UN treaty on the rights of older persons is being drafted. The July 2027 session will discuss the outline. The November 2027 session will present the first draft. Ghana’s experience—both its policy failures and its potential for reform—can inform the development of a treaty that is truly fit for purpose.
The question is whether Ghana’s policymakers will engage with the process, and whether the treaty will have the enforcement mechanisms to ensure that the next Kwame Asante does not spend his final years choosing between medication and food. The numbers demand urgency. The stories demand action. The treaty demands engagement.
This is the second in a multi-part investigative series on the crisis of care for older persons in Ghana. The series is produced by Ghanaian Watch with support from the African Liberators Economic Institute.