The International Labour Office (ILO) has issued a sobering report on the prospects of Ghana's Social Security and National Insurance Trust (SSNIT), cautioning that the fund's financial stability is at risk over the next 75 years.

The study points to delayed government payments of workers' contributions as a key factor exacerbating the scheme's fiscal challenges.

As of December 31, 2021, SSNIT's records showed a total debt of GH₵9.3 billion, with a substantial GH₵6.9 billion owed by the government itself.

This staggering figure represents about 75% of SSNIT's overall indebtedness, including overdue contributions and accrued interest charges.

The significant debt owed by the government has placed Ghana's pension fund in a delicate position, resulting in an annual decrease in SSNIT's investment returns by 1.3%.

This diminishing return severely limits the funds available for SSNIT to invest, thereby jeopardizing its ability to meet benefit payouts annually.

Alarmingly, data from 2009 to 2020 indicates that "Total contributions have been lower than the cost of benefits and operational costs, general and administrative expenses" amplifying the strain on the pension scheme.

Compounding the dire situation is SSNIT's meagre average return on total assets of 0.9% over the past 12 years, adjusted for inflation. This paltry return further compounds SSNIT's financial challenges, exacerbating its struggle to maintain stability.

The persistent issue of delayed government payments of deducted pension contributions exacerbates SSNIT's delicate position.

• Read also: SSNIT reserves projected to hit zero in 12 years – ILO

This prompts a crucial question: What becomes of the pension contributions deducted by the Government of Ghana?

With the current trajectory, the ILO warns that SSNIT's sustainability is in jeopardy, casting a shadow over the future of Ghana's pension system.