Ghana. Total pension funds increased by 18% to ¢39.6bn in 2021
Total pension funds of the Three-Tier Pensions Scheme increased by 18% in 2021 to ¢39.6 billion, the latest Financial Stability Review by the Bank of Ghana has revealed.
This is however lower than the 27% recorded in 2020.
The decreased growth rate was attributable to the ongoing lump sum payments under the private pension schemes and a marginal growth of the Basic National Social Security Scheme (BNSSS).
Also, private pension funds continued on a positive growth track in 2021.
Total private pension funds grew by 27.2% in 2022 to ¢28 billion.
The sustained growth in private pension funds, the report, said could be linked to better returns on investments and also the prosecution of defaulting Tier 2 employers.
Again, investments of private pension funds were still held primarily in government securities constituting a total of 84.0%.
From a total Assets Under Management (AUM) of ¢11.44 billion in 2020, the year-end AUM for 2021 was ¢11.54 billion.
The major risk exposures of the scheme, the report said remained the private and public indebtedness to the scheme, increasing benefit payments and low real rates of investment return.
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