Pensions Industry’s Assets Under Management Rises by 33% in 2023

The Pensions Industry’s Assets Under Management (AUM) in Ghana experienced robust growth in 2023, rising by 33.0% to GH¢61.8 billion by the end of December, up from GH¢46.6 billion in 2022.

This growth was driven largely by the strong performance of the Three-Tier Pension Scheme, which saw a similar increase in AUM.

The Three-Tier Pension Scheme’s assets reached GH¢61.8 billion at the close of 2023, reflecting a significant increase from the previous year’s GH¢46.6 billion. This growth underlines the Scheme’s appeal and resilience as it attracts contributions and investment income.

According to the Financial Stability Review, the 33% increase in pension assets in 2023 represents a notable acceleration compared to 2022’s 20% growth. This expansion suggests increasing participation and a stronger focus on retirement planning among contributors and fund managers alike.

The sustained growth in the Pensions Industry’s AUM indicates greater financial stability and savings mobilization within the economy. As pension funds accumulate assets, they contribute to a more stable financial market and provide crucial investment capital for long-term economic development.

The increase in AUM across the pensions industry reflects a positive trend in retirement savings, with pension funds continuing to build wealth for future retirees. This growth enhances the industry’s ability to deliver on its mandate of providing financial security for Ghana’s aging population.

Subsequently, the pension funds under the Basic National Social Security Scheme (BNSSS) grew relatively stronger compared to the previous years.

Growing from a total AUM of GH¢12.11 billion in 2022, the year-end AUM for 2023 stood at GH¢15.30 billion arising from payment of contribution arrears by the government, representing a 26.3% increase in 2023, as compared to a 4.9% increase in 2022.

Source:thehighstreetjournal.com