The Pensions Industry’s Assets Under Management (AUM) grew by 33.0% in 2023.

Similarly, the Three-Tier Pension Scheme’s AUM at the end of December 2023 stood at GH¢61.8 billion as compared to GH¢46.6 billion recorded in 2022.

According to the Financial Stability Review, pension funds increased by 33.0% in 2023, compared to the 20% h recorded in 2022.

The increase in growth, the report said, is attributable to the outcome of the alternative offer to pension funds which saw a high participation rate of about 95.0%, as well as the government’s commitment to meeting its payments obligations under the offer.

Also, the government’s partial redemption of contributions and the prosecution of employers defaulting on the mandatory pension schemes contributed to the surge in AUM.

Private Pension Fund

The Private Pension Funds was the main driver of the growth witnessed in the industry.

Total private pension funds grew by 32.0% in 2023 compared to 26.0% recorded in 2022.

The year-end total for private pension funds under management for 2023 was GH¢46.5 billion compared to GH¢ 35.3 billion recorded in 2022. The sustained growth in pension funds is attributable to better return on investments and the prosecution of employers defaulting on Tier 2 contributions.

Public Pension Funds

The pension funds under the Basic National Social Security Scheme (BNSSS) grew relatively stronger compared to the recent past.

From a total AUM of GH¢12.11 billion in 2022, the year-end AUM for 2023 was GH¢15.30 billion arising from payment of contribution arrears by the government.

This represented a 26.3% increase in 2023, compared to a 4.9% increase in 2022.