Effective management of pension funds not only determines the quality of life for retirees but also provides long-term capital that can be channelled into construction, housing, green energy and developmental projects.
As a result of the above, Chief Executive Officer-National Pensions Regulatory Authority Christopher Boadi-Mensah is calling on fund managers to diversify their portfolios to reduce risks and maximise returns for national development.
As governments of many emerging economies grapple with shifting demographics, rising life-expectancy and an expanding informal sector, the conversation around investment and pension management is more urgent than ever.
Mr. Boadi-Mensah made these observations at The Money Summit 2025 organised by Business and Financial Times in Accra recently.
Considering that a whopping 80 percent of Ghana’s labour force is engaged in the informal economy and untapped – meaning not under any regulated pension scheme – Mr. Boadi-Mensah is asking that funds be broadened to rope-in these workers.
He said denying these hard-working citizens who contribute significantly to the national economy any formal retirement protection “is not just a policy challenge, it is a social justice issue”.
Consequently, the National Pensions Regulatory Authority has developed a micro-pension regulatory framework that reflects the patterns and needs of informal workers to make pension funds in Ghana more inclusive.
The framework allows for daily, weekly or monthly contributions and accommodates both long-term and annuity-based retirement options.
He said the authority is working with stakeholders to design incentive models for the informal sector workers. These include contribution-matching incentives and tax reliefs to encourage broader participation.
To improve accessibility, NPRA is leveraging technology to develop a responsive and reliable dedicated digital platform – the Pension Digital Ecosystem – that will make onboarding and benefit access seamless.
Weighing-in on the issue of pension investments diversification, Mr. Boadi-Mensah stressed a need to control their exposure to government securities and bonds that carry hidden risks.
