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Ghana’s pension industry experienced a historic surge in 2024, with total pension fund assets reaching an unprecedented GH¢86.23 billion, up from GH¢61.8 billion in 2023.
This represents a significant 39.5% year-on-year growth, according to the latest 2024 Financial Sector Report on pension activities.
The report attributes this remarkable performance to a combination of factors, including stricter enforcement against employers defaulting on mandatory contributions, increased enrolment in pension schemes, partial redemption of arrears by the government, and favourable investment returns.
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Private pension schemes—comprising Tier 2 and Tier 3—remained the driving force of the sector. Their combined Assets Under Management (AUM) rose by 37.4%, from GH¢46.50 billion in 2023 to GH¢63.88 billion in 2024.
The growth was fuelled by improved investment performance, higher member enrolment, stronger contributions, and a firm clampdown on defaulting employers, including prosecutions to enforce Tier 2 payments.
The Basic National Social Security Scheme (BNSSS), managed by the Social Security and National Insurance Trust (SSNIT), also recorded robust growth. Its AUM jumped from GH¢15.3 billion in 2023 to GH¢22.4 billion in 2024, driven by strong investment returns and partial government settlement of outstanding debts.
Benefits paid under the BNSSS climbed to GH¢6.46 billion, compared to GH¢5.46 billion in 2023, reflecting both rising retirement payouts and the need for enhanced risk management strategies to sustain the scheme’s long-term obligations.
Membership across all pension schemes increased in 2024, supported by intensified compliance measures by the National Pensions Regulatory Authority (NPRA).
The informal sector also saw moderate but steady gains, thanks to public awareness campaigns and the introduction of more flexible pension products tailored for self-employed workers.
The report highlighted notable shifts in how pension funds allocated their investments. Investments in government securities dropped from 81.49% in 2023 to 72% in 2024, while allocations to local government and statutory agency instruments fell from 2.56% to 0.93%.
Conversely, there was a clear pivot toward market-based and equity investments. Collective investment schemes grew from 1.46% to 3.51%, while ordinary and non-redeemable preference shares surged from 2.50% to 5.71%. Some pension funds also diversified into alternative assets, including real estate and private equity.
Analysts say the 2024 performance positions Ghana’s pension industry for sustained growth, provided that enforcement, diversification, and prudent investment management continue.
However, they caution that rising benefit payouts underscore the importance of long-term sustainability planning.
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