Pension fund assets rise to GH₵86.23bn in 2024

Ghana’s pension fund assets reached an all-time high of GHS86.23 billion in 2024, up from GHS61.8 billion in 2023.

According to the 2024 Financial Sector Report on pension activities, this represents a 39.5 percent year-on-year growth.

Growth Drivers

The report attributes this expansion to tighter enforcement against employers defaulting on mandatory contributions, increased enrolment, partial government settlement of arrears and favourable investment returns.

Private pension schemes, comprising Tier 2 and Tier 3, were key contributors. Assets Under Management (AUM) for these schemes grew by 37.4 percent to GHS63.88 billion, compared to GHS46.50 billion in 2023.

This was propelled by improved investment yields, higher member enrolment, better contribution flows and rigorous enforcement of mandatory Tier 2 payments through prosecutions.

Membership growth was recorded across all schemes, largely due to stronger compliance measures by the National Pensions Regulatory Authority (NPRA).

The informal sector also registered moderate gains in enrolment, aided by targeted public education and the introduction of flexible pension products for self-employed individuals.

Tier 1 Performance

The Basic National Social Security Scheme (BNSSS), administered by the Social Security and National Insurance Trust (SSNIT), recorded notable growth. AUM increased to GH¢22.4 billion in 2024 from GH¢15.3 billion in 2023. This was supported by improved investment returns and government debt repayments.

Benefits paid under the BNSSS also rose, reaching GHS6.46 billion in 2024, up from GHS5.46 billion in 2023. This reflects rising liabilities and underscores the need for robust risk management.

Investment Trends

The report noted a reduction in pension fund allocations to government securities, from 81.49 percent in 2023 to 72 percent in 2024. Investments in local government and statutory agencies also fell, from 2.56 percent to 0.93 percent.

In contrast, investments in Collective Investment Schemes grew from 1.46 percent to 3.51 percent. Allocations to Ordinary and Non-Redeemable Preference Shares rose from 2.50 percent to 5.71 percent, indicating increased appetite for market-based and equity instruments.

Some pension funds also diversified into alternative assets such as real estate and private equity. This reflects a shift towards a broader investment mix aimed at balancing returns with risk.