Minister of Finance-designate, Kenneth Nana Yaw Ofori-Atta has hinted of a possible extension of the mandatory retirement age of 60 years as part of efforts to sustain the Social Security and National Insurance Trust (SSNIT).
The World Bank in its 2016 report on the governance of SSNIT projected that the fund will become cash flow negative in 2019 and all of its assets will be used up by 2031 which may lead to cuts in benefits for current pensioners.
Answering questions on this during his vetting by the Public Appointments Committee of Parliament on Friday, Mr Ofori-Atta stated that the retirement age may be extended to allow for some space fund to thrive.
“We could also possibly be moving the retirement age which then gives the space for people to work longer and then, therefore, the need for those payments at that time do not crystallise”, he suggested.
According to him, “we still predominantly have a young population which means they will be working longer and if we find jobs for them”, SSNIT would have more cash inflows to pay its beneficiaries.
Also, for him, the tier-three voluntary scheme had been underutilised and needed to relooked at to bring in more money into the fund.
“The tier-three voluntary scheme is something that I believe has not been utilised properly but when looked at would bring in more money for SSNIT’s operations”.
“We hope to make sure workers are given what they are due when they retire and we will put our minds to it to achieve just that”, he added.