The total value of pension fund assets in Ghana reached a record GH¢86.23 billion in 2024, up from GH¢61.8 billion in 2023.
This represents a 39.5% increase over the previous year, according to the 2024 Financial Sector Report on pension activities.
Growth Drivers
The report attributes the growth to stricter enforcement against employers defaulting on mandatory contributions, increased enrolment, partial government redemption of arrears, and favourable investment returns.
Private pension schemes, comprising Tier 2 and Tier 3, played a major role, with Assets Under Management (AUM) rising by 37.4% to GH¢63.88 billion, compared to GH¢46.50 billion in 2023.
Growth was driven by improved investment returns, higher enrolment, better contributions, and enforcement of mandatory Tier 2 payments through prosecutions.
Membership across all schemes rose due to enhanced compliance measures by the National Pensions Regulatory Authority (NPRA).
Informal sector enrolment also saw moderate gains, supported by public education and flexible pension products for self-employed workers.
Tier 1 Performance
The Basic National Social Security Scheme (BNSSS), managed by the Social Security and National Insurance Trust (SSNIT), recorded strong growth. Its AUM increased to GH¢22.4 billion in 2024 from GH¢15.3 billion in 2023, driven by better investment returns and government debt settlement.
Benefits paid under BNSSS also rose, reaching GH¢6.46 billion in 2024 compared to GH¢5.46 billion in 2023, signalling rising liabilities and the need for effective risk management.
Investment Trends
The report shows a decline in pension fund investments in government securities—from 81.49% in 2023 to 72% in 2024—and in local government/statutory agency investments, which fell from 2.56% to 0.93%.
Conversely, investments in Collective Investment Schemes grew from 1.46% to 3.51%, and in Ordinary/Non-Redeemable Preference Shares from 2.50% to 5.71%, reflecting a growing interest in market-based and equity investments.
Some funds also ventured into alternative assets such as real estate and private equity.
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