Raising Retirement Age Could Delay Youth Employment by 7 Years – SSNIT Boss Warns

Raising Retirement Age Could Delay Youth Employment by 7 Years – SSNIT Boss Warns

The Director-General of the Social Security and National Insurance Trust (SSNIT), Kwasi Afreh Biney, has advised against any hasty decision to increase Ghana’s retirement age, warning that such a move could push back job opportunities for young people by up to seven years.

Speaking on Joy News’ PM Express Business Edition, Mr Biney acknowledged that shifting demographic trends have made the case for extended working years more compelling, as more Ghanaians are living longer and remaining healthier beyond age 60.

However, he stressed that extending retirement is not simply a matter of improved life expectancy. He noted that broader factors such as employment rates, unemployment figures, and job availability must be carefully considered.

His remarks come amid rising debate over whether Ghanaians should work longer before accessing pension benefits, particularly as many retirees continue to seek private-sector employment after leaving public service.

Mr Biney insisted that any decision on retirement age should emerge from broad national dialogue rather than being dictated by a single institution.

“We all need to go and sit together as stakeholders, brainstorm, deliberate, and ultimately come to the point where we all make a decision, rather than an individual institution like SSNIT deciding,” he said.

He also highlighted the pension implications of raising the retirement age, noting that it would reduce immediate payouts while increasing contribution inflows into the scheme.

But he cautioned that these financial gains must be weighed against the potential cost to youth employment, asking: “How do we just oppose that against probably creating another backlog of five to seven years on unemployed youth who could have come into the employment bracket?”

Mr Biney maintained that the issue demands a thorough assessment of competing national priorities, including pension sustainability, labour market conditions, and youth employment.

“So we need all of us to sit down, look at the numbers, look at the various alternatives, the opportunity cost of taking a particular decision against the other, and then we take a much more comprehensive decision,” he concluded.

Credit to Myjoyonline