The Social Security and National Insurance Trust (SSNIT) has announced a 10 per cent overall pension increase for 2026, with pensioners on the lower income brackets set to enjoy significantly higher gains.
The announcement was made in Accra on 8th January, 2026 during the presentation of the 2026 Pension Indexation by Mrs Evelyn Adjei, Acting Chief Actuary of SSNIT.
Explaining the decision, Mrs Adjei said indexation is simply the annual process used to increase pensions already in payment, in order to protect pensioners from the rising cost of living.
“Indexation is how we preserve the purchasing power of our pensioners. These are people who are dear to us and on whose behalf we work,” she explained.
According to Mrs Adjei, indexation is not optional. It is required by law under Section 80 of the National Pensions Act, 2008 (Act 766), which mandates SSNIT to review pensions annually in line with wage growth, inflation, or any rate approved by the Board of Trustees in consultation with the National Pensions Regulatory Authority (NPRA).
How the 2026 Indexation Was Calculated
SSNIT considered: Wage growth between 2024 and 2025; Average inflation, which officially stood at 5.4% at the end of December 2025, according to the Government Statistician.
The cost of the increase and its impact on the long-term sustainability of the pension fund
“We want to make sure the fund is sustainable — that it will be here for all of us as long as we live,” Mrs Adjei said.
After all considerations and regulatory approvals, SSNIT settled on a 10% overall indexation rate for 2026.
Mrs Adjei stressed that the 10% increase will not be applied evenly across board. Instead, SSNIT adopted a redistribution approach, where pensioners on lower incomes receive higher effective increases than those on higher pensions.
Here’s how it works:
6% increase across board
Plus a flat amount of GH¢91.56 added to every pension
This method ensures that pensioners on smaller pensions benefit more, in line with the solidarity principle of social security.
As pension amounts increase, the effective percentage gain reduces, ensuring fairness and stronger support for low-income pensioners.
Cost to the Pension Fund
SSNIT projects that without indexation, it would have paid about GH¢6.3 billion in pensions in 2026 for existing pensioners alone.
However, the 10% indexation will add an extra GH¢660 million, pushing total pension payments to nearly GH¢7 billion, excluding: New pensioners joining in 2026; Death benefits; Old-age lump sums; Invalidity benefits; and Minimum Pension Increased for New Pensioners.
SSNIT also announced an increase in the minimum pension for new retirees in 2026, from GH¢300 to GH¢400, representing a 33.3% increase.
Mrs Adjei clarified that this applies only to pensioners joining the payroll in 2026, not existing pensioners.
In conclusion, SSNIT revealed that about 70% of all pensioners will receive an effective increase of 10% or more, with increases ranging from 10% to as high as 36.5%.
“This is to make sure your pension and our future pensions retain their value. SSNIT is committed to delivering on its promise,” Mrs Adjei said.
