A pension consultant has hailed government’s decision to enact laws that will allow contributors of Social Security National Insurance Trust (SSNIT) to use 30 per cent of their pension money as guarantee for mortgage to secure houses before their retirement.
Mr. Yaw Korankyi Antwi said such law, if passed, will help workers secure comfortable accommodation before their retirements.
His comment comes on the back of the announcement by the Minister of Works and Housing, Samuel Atta-Akyea who said his Ministry is working with the Ministry of Finance to provide guarantees for the private sector to enable them to construct affordable housing for Ghanaians.
“It is good if the government will do such a thing because putting up building is capital intensive and most workers in the country cannot afford,” Mr. Antwi told Bright Asempa, host of Onua FM’s Yen Sempa.
He observed “If you borrow from the bank to put up your building, you will pay while working and when you go on retirement and you would have not finished payment. They calculate and deduct from the pension contribution”, he explained.
The pension consultant said the government must intervene in the interest rate of the banks because it is higher than what workers can afford.
“The interest rate is higher so if someone goes for the long-term mortgage, it affects the number of years and that will have impact on the worker”, he added.
He said, “the salary levels of Ghanaian workers are very low and the mortgage is also in dollars that is also a worry”.
He advised workers who want mortgage to start early to be able to pay before their retirement.
“Workers should start early because that will help you pay early”, he explained.
By Kweku Antwi-Otoo|3news.com|Ghana