Population Ageing and its Implications for Social Protection and Social Security Expenditures in Ghana

Ghana is experiencing demographic shifts, marked by a gradual increase in the proportion of older adults in its population. This trend, driven by declining fertility rates and improvements in health, has significant implications for the country’s social and economic structures, particularly the social security system. This chapter examines the increasing numbers of the population aged 60 years and above, which currently stands at 6.5% of the total population. It shows that as the ageing population grows, the demand for pensions, healthcare services, and long-term care is expected to rise sharply, placing considerable strain on existing social protection mechanisms. Ghana’s current social security framework, primarily managed by the Social Security and National Insurance Trust (SSNIT), faces challenges in coverage, sustainability, and adequacy of benefits. Many older Ghanaians, especially those in the informal sector, remain outside the formal pension system, increasing their vulnerability to poverty and social exclusion. The ageing trend also has broader economic implications, including a shrinking labour force and increased dependency ratios, which could affect national productivity and fiscal stability. Addressing these challenges requires proactive policy responses, including expanding pension coverage, strengthening healthcare infrastructure, and promoting active ageing. Furthermore, integrating informal sector workers into contributory schemes is crucial for addressing the needs of the elderly population while creating opportunities for the still predominantly younger population. and underscores the urgency of rethinking Ghana’s social security policies to ensure that they are inclusive, resilient, and responsive to the needs of an ageing population.