Three-Tier Pension Scheme AUM reaches GHS 61.8 Billion as participation rates hit 95%

Ghana’s pension sector saw significant growth in 2023, with assets under management (AUM) in the Three-Tier Pension Scheme increasing by 33% to GH¢61.8 billion, up from GH¢46.6 billion in 2022.

Key drivers included strong uptake in alternative pension fund offers, partial government redemption of contributions, and stringent enforcement against defaulting employers.

The Basic National Social Security Scheme also grew by 26.3%, reaching GH¢15.3 billion due to arrears settlement.

Private pension funds grew 32% to GH¢46.5 billion, with 80% invested in government securities. However, challenges remain, including sector indebtedness, rising benefits, and low real returns, which may impact long-term sustainability.