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.
Read More @MyJoyOnline
222 views
