SSNIT must begin to invest its contributions wisely – MP Gomoa

General News of Saturday, May 4, 2019

Source: citinewsroom.com

2019-05-04

Alexander Abban, Member of Parliament for Gomoa West, said the low income of pensioners paid to retirees should in part be attributed to the poor investment habits of Social Security and the National Insurance Trust (SSNIT).

He said low or low investment returns make it extremely difficult for the SSNIT to generate enough interest to give more to the contributors when they retire.

Some fear that most retirees may not lead a decent life because pension benefits are terribly inadequate – a situation that legislator attributed to the SSNIT's inability to invest prudently.

"I think one of the problems is the type of investment that the SSNIT itself gets. When we pay them this money, they are forced to work with that money for it to multiply. It is in the hope that at the end of the work of the people, this contribution will be important enough to take care of them, "he said about the Big Issue.

"Unfortunately, at the time of retirement, the money has instead declined. The SSNIT should therefore examine the type of investment portfolio in which pension money is injected. It is true that the average Ghanaian does not earn much. "

"The Ghanaians claim to work and the government also claims to pay.The best that they can get is so that the person who took the responsibility to take that money every month and make sure that I will invest should do it wisely, "he added.

But Dr. John Ofori Tenkorang, CEO of SSNIT, said the situation was not resulting from investment losses.

"I want to say that the issue of investment is not what affects the pension. The investment speaks of sustainability, because the contribution people pay is not enough because the benefit increases, it will not be enough to pay people, so we must rely on investments. "

"So I think that all that SSNIT controls with the investment is very difficult, so we change the investment outlook, we would prefer to be a pbadive investor rather than a controlling investor," he said. -he declares.

Low retirement contributions causing low benefits – SSNIT boss

The SSNIT attributed the situation to the low benefits that some retirees in the country receive during retirement in the inability of some employers, or even their employees, to contribute enough while on active duty.

He therefore wants the contributors to be true to themselves and make the appropriate payments to avoid these circumstances.