Labour analyst and former government negotiator, Austin Gamey, has described as inappropriate the recent proposal to extend Ghana’s retirement age from 60 to 65 years, warning that it could worsen the country’s already high youth unemployment rate and stall job progression across sectors.
His comments come in response to remarks made by Christopher Boadi-Mensah, Chief Executive Officer of the National Pensions Regulatory Authority (NPRA), who proposed the change during a briefing to Parliament’s Employment, Labour Relations and Pensions Committee on May 15.
Boadi-Mensah argued that extending the retirement age would ease pressure on Ghana’s pension schemes and allow experienced older professionals to continue contributing productively to national development.
He also noted the proposal could help tackle the problem of age falsification among public servants.
But Gamey, who served on the commission that designed Ghana’s current three-tier pension system, believes the proposal could choke employment opportunities in both the public and private sectors.
“I do not think the clamouring for the extension of the age to 65 is appropriate,” he said. “It will overburden the system. Otherwise, we will be five years in deficit when it comes to promoting others to the next level and hiring new people.”
With Ghana facing persistent youth unemployment, Gamey cautioned that keeping older workers in post longer could stall career progression for younger professionals and reduce the pace of job creation.
“We have massive unemployment among young people. Those who are tired and due for retirement should not be forced to continue. At some point, they become a burden to the employer,” he added.
While rejecting the proposed retirement age hike, Gamey called for reforms in the management of retirement funds to ensure better returns for retirees.
“Pension fund managers must invest in richer portfolios so the return on investment benefits the very people they are meant to serve,” he said.
The debate around raising the retirement age reflects a growing tension between addressing pension sustainability and tackling youth joblessness, two critical challenges shaping Ghana’s labour and economic policy landscape.
