Ghana’s Private pension funds control 71% of industry’s assets

Ghana’s Private pension funds control 71% of industry’s assets

Private pension funds have maintained their strong growth over the years, reaching a record high of GH28Billion in 2021 from the previous year´s GH28Billion.

The increase represents 27 pèrcent, with private pension funds – the mandatory 2nd Tier and voluntary 3rd Tier schemes – now controlling a 71 percent share of the industry´s total assets under management (AUM) in the year under review, latest data from the National Pension Regulatory (NPRA) show.

A Breakdown of private schemes shows that 2nd Tier accounted for GH20.3Billion – 72 percent of private pension assets, with the 3rd Tier contributing GH7.7Billion, 28 percent.

The Basic National Social Security Scheme or 1st Tier, managed by SSNIT, controls the industry´s remaning 29 percent of assets – wich translates into GH11.9billions from 1.7 million active contributors.

thiois bring total pension funds of the three-tier pension scheme as at the end of december 2021 to GH39.6billion compared to GH33.billion recorded in 2020. The 2021 AUM in asn increse of GH6.1billion and a growth of 18 percent from the previus year.

the increse, according to the regulator, is attributable to improvement in the colletion of contributions during the year under review.

Meanwhiles a study of pension funds growth under the 3-Tier PensionScheme from 2016 to 2021 shows an annual average growth rate of 21 percent. Private sector pension Scheme consist of the mandatory Occupational PensionScheme (2nd Tier) and the Voluntary Provident Fund Sheme and Personal Pension Shceme (3rd Tier).

Source: Ghana.web