Retirement How to calculate your SSNIT pension

Most retirees when they start receiving their pension allowance feel cheated especially calculating the number of years they have worked.

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In Ghana pension is one of the controversial issues many retirees have to battle with.

Most retirees when they start receiving their pension allowance feel cheated especially calculating the number of years they have worked.

Let’s look at how to calculate your SSNIT pension.

READ ALSO: SSNIT announces 18% rise in pension benefits

But first who qualifies for a full pension?

 You must be at least 60 years old. You also must have made a minimum contribution of 15 years in aggregate

How to calculate your pension

1. Multiply your best 36 months (3 years) average salary by your pension right obtained so far.

2.  Example if you plan to retire in 2022 and your best salary for three years in 1550 for each month, and you have contributed to the scheme for 32 years, this is what you will do.

READ ALSO: Lack of data hampering our operation - SSNIT

3. (Your best salary for 3 years) 1550*3(years) = 55, 800

4.  The GHC 55,800 will be divided by your pension right credit which is currently 55.63%

5. This means you will be receiving an annual benefit of GHS 31,596.75 and a monthly benefit of GHS 2,633.06.

A calculated pension for a worker who will retire in 2022 play

A calculated pension for a worker who will retire in 2022

 

6.  In the case of death before your retirement or even after your retirement, your total contribution will be calculated with interest and paid to your family upon submission of your medical or death certificate, police report, and an affidavit from the chief of town to the scheme.

READ ALSO: SSNIT justifies increase benefits in pension

Note that SSNIT also pays a percentage of your contributions to NHIA (Managers of NHIS) every month to fund your Health Insurance  so you don’t pay for it when you want to renew it.

Pension Right Credit is an income-related benefit to give you some extra money in retirement.

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