Ghana’s Pension Fund Assets Hit Record GHS 86.23bn in 2024 on Strong Private Scheme Growth
Ghana’s total pension fund assets rose to a record GH¢86.23 billion in 2024, up 39.5% from GH¢61.8 billion in 2023, according to the Bank of Ghana’s 2024 Financial Sector Report on pension activities.
The growth was driven by stricter enforcement against employers defaulting on mandatory contributions, increased enrolment, partial government redemption of arrears, and favourable investment returns.
Private pension schemes — Tier 2 and Tier 3 — were the main growth drivers, with Assets Under Management (AUM) rising 37.4% to GH¢63.88 billion from GH¢46.50 billion in 2023. Improved investment performance, better contribution compliance, and prosecutions to enforce Tier 2 payments boosted inflows. The National Pensions Regulatory Authority (NPRA) also enhanced compliance, lifting overall scheme membership. Informal sector participation recorded moderate gains, supported by public education and flexible 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. 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.
