Ghana’s total pension fund assets grew sharply in 2024, reaching GH¢86.23 billion, up from GH¢61.8 billion in 2023, according to the 2024 Financial Sector Report. This 39.5% year-on-year growth marks one of the sector’s strongest performances in recent years.
The report attributes the rise to stricter enforcement of pension contribution compliance, particularly against employers who default on payments.
Increased enrolment, partial government clearance of pension arrears, and favourable investment returns also boosted the sector.
Private pension schemes, comprising Tier 2 and Tier 3, recorded substantial gains. Assets under management for these schemes climbed 37.4% to GH¢63.88 billion in 2024, up from GH¢46.50 billion the previous year.
The growth was supported by improved contributions, higher investment returns, and more aggressive enforcement of mandatory Tier 2 payments through prosecutions.
Membership across all schemes expanded due to enhanced compliance measures by the National Pensions Regulatory Authority (NPRA).
The informal sector also recorded modest increases, supported by public education campaigns and flexible pension products tailored for self-employed workers.
The Basic National Social Security Scheme (BNSSS), managed by the Social Security and National Insurance Trust (SSNIT), also posted robust results.
Its assets under management grew from GH¢15.3 billion in 2023 to GH¢22.4 billion in 2024, driven by better investment returns and government debt settlement efforts.
Benefit payouts under BNSSS rose to GH¢6.46 billion from GH¢5.46 billion the previous year, reflecting increasing liabilities and the growing need for strong risk management.
The report notes a significant change in how pension funds are invested. Holdings in government securities declined from 81.49% in 2023 to 72% in 2024, while investments in local government and statutory agency securities dropped from 2.56% to 0.93%.
Conversely, 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%.
This shift indicates a growing appetite for market-based and equity investments among pension managers.
Some funds have also diversified into alternative assets such as real estate and private equity, signaling a broader investment strategy aimed at boosting returns and reducing overreliance on government debt.
