The 2024 Financial Sector Report on pension activities has revealed that Ghana’s pension fund assets increased by 39.5% in 2024 compared to the previous year.

This growth brought the total value of pension fund assets to a record GH¢86.23 billion in 2024, up from GH¢61.8 billion in 2023.

The report attributed the increase to stricter enforcement against employers defaulting on mandatory contributions, higher enrolment, partial government repayment of arrears, and favourable investment returns.

Private pension schemes, comprising Tier 2 and Tier 3, played a significant role, with Assets Under Management (AUM) rising by 37.4% to GH¢63.88 billion from GH¢46.50 billion in 2023. The growth was driven by improved investment returns, higher enrolment, better contributions, and enforcement of Tier 2 payments through prosecutions.

Membership across all schemes rose due to enhanced compliance measures by the National Pensions Regulatory Authority (NPRA).

Informal sector enrolment also recorded moderate gains, supported by public education and flexible pension products for self-employed workers.

The Basic National Social Security Scheme (BNSSS), managed by the Social Security and National Insurance Trust (SSNIT), posted strong growth. Its AUM increased to GH¢22.4 billion in 2024 from GH¢15.3 billion in 2023, driven by better investment returns and government debt settlement.

Benefits paid under the BNSSS rose from GH¢5.46 billion in 2023 to GH¢6.46 billion in 2024, highlighting rising liabilities and the need for effective risk management.

The report also showed a decline in pension fund investments in government securities from 81.49% in 2023 to 72% in 2024, and in local government/statutory agency investments, which fell from 2.56% to 0.93%.

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 growing interest in market-based and equity investments. Some funds also ventured into alternative assets such as real estate and private equity.

Source: novinite

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