BY Nadia Ntiamoah
The total value of pension fund assets in Ghana has reached a record high of GH¢86.23 billion in 2024, representing a 39.5% increase from GH¢61.8 billion in 2023.
According to the 2024 Financial Sector Report on pension activities, this growth can be attributed to several factors.
What Drives The Growth?
The growth is driven by stricter enforcement against employers defaulting on mandatory contributions, increased enrolment, partial government redemption of arrears, and favourable investment returns.
Private pension schemes, including Tier 2 and Tier 3, played a significant role, with Assets Under Management rising by 37.4% to GH¢63.88 billion.
Breakdown of Pension Schemes
Private Pension Schemes: Assets Under Management rose by 37.4% to GH¢63.88 billion, driven by improved investment returns, higher enrolment, better contributions, and enforcement of mandatory Tier 2 payments.
– Basic National Social Security Scheme (BNSSS): Managed by the Social Security and National Insurance Trust (SSNIT), its Assets Under Management increased to GH¢22.4 billion in 2024 from GH¢15.3 billion in 2023, driven by better investment returns and government debt settlement.
Investment Trends
There has been a shift in investment trends, with a decline in pension fund investments in government securities from 81.49% in 2023 to 72% in 2024.
Conversely, investments in Collective Investment Schemes grew from 1.46% to 3.51%, and in Ordinary/Non-Redeemable Preference Shares from 2.50% to 5.71%, reflecting a growing interest in market-based and equity investments.
Benefits Paid
Benefits paid under BNSSS also rose, reaching GH¢6.46 billion in 2024 compared to GH¢5.46 billion in 2023, signalling rising liabilities and the need for effective risk management.
Membership Growth
Membership across all schemes rose due to enhanced compliance measures by the National Pensions Regulatory Authority (NPRA).
Informal sector enrolment also saw moderate gains, supported by public education and flexible pension products for self-employed workers.
