Ghana’s pension fund assets hit a historic high of GH¢86.23 billion in 2024, marking a sharp 39.5% increase from GH¢61.8 billion in 2023, according to the latest Financial Sector Report on pension activities.
Key Drivers of Growth
The impressive growth was fuelled by stricter enforcement against defaulting employers, expanded enrolment, partial clearance of government arrears, and strong investment returns.
Private pension schemes—Tier 2 and Tier 3—were major contributors, with Assets Under Management (AUM) climbing 37.4% to GH¢63.88 billion, up from GH¢46.50 billion in 2023. This was supported by:
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Higher investment yields
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Improved contribution rates
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Increased compliance through prosecutions for unpaid Tier 2 obligations
The National Pensions Regulatory Authority (NPRA) also intensified compliance measures, driving membership growth across all schemes. Informal sector participation saw steady gains, aided by flexible pension products and public awareness campaigns targeting self-employed workers.
Tier 1 Performance
The Basic National Social Security Scheme (BNSSS), managed by SSNIT, posted strong growth with AUM rising to GH¢22.4 billion in 2024 from GH¢15.3 billion in 2023. This was largely driven by improved investment performance and the settlement of government debts.
Benefit payouts under BNSSS reached GH¢6.46 billion in 2024, up from GH¢5.46 billion in 2023—highlighting the scheme’s growing liabilities and the need for prudent risk management.
Changing Investment Trends
Pension funds reduced their exposure to government securities, which dropped from 81.49% in 2023 to 72% in 2024. Investments in local government and statutory agency instruments also declined from 2.56% to 0.93%.
Meanwhile, allocations to Collective Investment Schemes rose from 1.46% to 3.51%, and investments in Ordinary/Non-Redeemable Preference Shares increased from 2.50% to 5.71%, signalling a shift towards more market-based and equity-focused investments.
Some funds also diversified into alternative assets, including real estate and private equity, in a bid to strengthen portfolio resilience.
source: myjoyonline
