Ghana’s pension fund industry surged to an all-time high of GH¢86.23 billion in 2024, marking a 39.5% jump from GH¢61.8 billion in 2023, according to the latest Financial Sector Report.
Stronger regulatory enforcement, increased enrolment, and improved investment returns have powered Ghana’s pension fund assets to a historic high of GH¢86.23 billion in 2024. The 2024 Financial Sector Report highlights a robust 39.5% year-on-year growth from GH¢61.8 billion recorded in 2023.
The surge is attributed to a combination of factors, including tighter enforcement against defaulting employers, partial settlement of government arrears, and aggressive public education efforts targeting informal sector workers.
Private pensions—comprising Tier 2 and Tier 3 schemes—led the growth, with their Assets Under Management (AUM) rising by 37.4% to GH¢63.88 billion, up from GH¢46.50 billion in 2023. The National Pensions Regulatory Authority (NPRA) credits this to enhanced compliance, including prosecutions of employers who failed to remit Tier 2 contributions.
The Social Security and National Insurance Trust (SSNIT), which manages the Basic National Social Security Scheme (BNSSS), also saw a significant uptick. SSNIT’s AUM increased to GH¢22.4 billion in 2024, from GH¢15.3 billion in 2023, buoyed by better returns and government debt repayments.
Benefit payments under the BNSSS climbed to GH¢6.46 billion, up from GH¢5.46 billion in the previous year—an increase that underscores rising liabilities and the need for sound risk management in the sector.
The report also notes a shift in investment trends, with pension fund allocations to government securities declining from 81.49% in 2023 to 72% in 2024. Meanwhile, allocations to Collective Investment Schemes more than doubled from 1.46% to 3.51%, and investments in Ordinary/Non-Redeemable Preference Shares jumped from 2.50% to 5.71%.
