The overall worth of pension fund property in Ghana reached a file GH¢86.23 billion in 2024, up from GH¢61.8 billion in 2023.
This represents a 39.5% enhance over the earlier 12 months, in response to the 2024 Monetary Sector Report on pension actions.
Development Drivers
The report attributes the expansion to stricter enforcement in opposition to employers defaulting on necessary contributions, elevated enrolment, partial authorities redemption of arrears, and beneficial funding returns.
Non-public pension schemes, comprising Tier 2 and Tier 3, performed a serious function, with Property Beneath Administration (AUM) rising by 37.4% to GH¢63.88 billion, in comparison with GH¢46.50 billion in 2023.
Development was pushed by improved funding returns, greater enrolment, higher contributions, and enforcement of necessary Tier 2 funds by way of prosecutions.
Membership throughout all schemes rose because of enhanced compliance measures by the Nationwide Pensions Regulatory Authority (NPRA).
Casual sector enrolment additionally noticed reasonable positive aspects, supported by public training and versatile pension merchandise for self-employed staff.
Tier 1 Efficiency
The Fundamental Nationwide Social Safety Scheme (BNSSS), managed by the Social Safety and Nationwide Insurance coverage Belief (SSNIT), recorded robust progress. Its AUM elevated to GH¢22.4 billion in 2024 from GH¢15.3 billion in 2023, pushed by higher funding returns and authorities debt settlement.
Advantages paid below BNSSS additionally rose, reaching GH¢6.46 billion in 2024 in comparison with GH¢5.46 billion in 2023, signalling rising liabilities and the necessity for efficient threat administration.
Funding Tendencies
The report reveals a decline in pension fund investments in authorities securities—from 81.49% in 2023 to 72% in 2024—and in native authorities/statutory company investments, which fell from 2.56% to 0.93%.
Conversely, investments in Collective Funding Schemes grew from 1.46% to three.51%, and in Unusual/Non-Redeemable Desire Shares from 2.50% to five.71%, reflecting a rising curiosity in market-based and fairness investments.
Some funds additionally ventured into different property similar to actual property and personal fairness.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially symbolize the views or coverage of Multimedia Group Restricted.
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