Ghana's total pension fund assets in 2024 hit a record high of GH¢86.23 billion in 2024 up from GH¢61.8 billion in 2023, representing a 39.5% increase over the previous year.

That is according to the Bank of Ghana’s 2024 Financial Sector Report on pension activities.

The report attributes the growth to stricter enforcement against employers defaulting on mandatory contributions, increased enrolment, partial government redemption of arrears, and favorable investment returns.

Private pension schemes, comprising Tier 2 and Tier 3, played a major role, with Assets Under Management (AUM) rising by 37.4% to GH¢63.88 billion compared to GH¢46.50 billion in 2023.

Growth was driven by improved investment returns, higher enrolment, better contributions, and enforcement of mandatory 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 saw 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), saw AUM increase to GH¢22.4 billion from GH¢15.3 billion, aided by investment returns and government debt settlement.

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According to the report, benefits paid under the scheme rose to GH¢6.46 billion from GH¢5.46 billion in 2023, underscoring the need for effective liability management.

Investment patterns shifted in 2024, with pension fund allocations to government securities falling from 81.49% to 72% and to local government/statutory agencies from 2.56% to 0.93%.

Allocations to Collective Investment Schemes increased from 1.46% to 3.51%, and to Ordinary/Non-Redeemable Preference Shares from 2.50% to 5.71%, signalling a gradual move towards market-based and equity investments. Some funds also diversified into alternative assets, including real estate and private equity.

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