The Social Security and National Insurance Trust (SSNIT) pension scheme continued to post a negative real rate of return, recording -12.6% at the end of the first quarter of this year.
According to the Financial Stability Review report by the Bank of Ghana, assets available for benefits of the SSNIT-managed Basic National Social Security Scheme (BNSSS) dropped marginally by 2.3% to ¢11.28 billion in March 2022 from the ¢11.54 billion recorde in 2021 Quarter 4.
Also, though the private pensions industry remained resilient in 2021, the worsening macroeconomic conditions in the 1st half of this year present a new challenge in the industry.
Again, persevering the value of pension funds and achieving a positive real rate of return on the investment of contributors’ funds, given the upsurge in the inflation rate is becoming increasingly difficult.
But the Trust is however hopeful that the indicators will improve when public indebtedness is reduced.
Meanwhile, despite the effects of the Covid-19 pandemic and other unfavorable economic conditions, private pension fund assets rose from ¢28 billion in 2021 Quarter 4 to ¢31.4 billion by the end of June 2022.
This performance, the report, said can be attributed to increased contribution mobilisation (through effective prosecution of defaulters) and favorable investment outcomes
“It is expected that macroeconomic conditions will improve in the 2nd half of the year to enable the private pensions industry achieve a positive real rate of return on investments of pension assets”, it added.