The Social Security and National Insurance Trust (SSNIT) pension scheme continued to post a negative real rate of return, registering -12.6% at the end of the first quarter of this year.
According to the Bank of Ghana Financial Stability Review report, assets available for benefits from the National Basic Social Security Scheme (BNSSS) managed by SSNIT decreased slightly by 2.3% to 11.28 billion yen in March 2022, compared to 11.54 billion yen recorded in 2021. Quarter 4.
Moreover, although the private pension sector remained resilient in 2021, the deterioration of macroeconomic conditions in the 1st half of this year presents a new challenge for the sector.
Once again, it is becoming more and more difficult to maintain the value of pension funds and to obtain a positive real rate of return on the investment of contributors’ funds, given the surge in the rate of inflation.
But the Trust nevertheless hopes that the indicators will improve when public debt is reduced.
Meanwhile, despite the effects of the Covid-19 pandemic and other adverse economic conditions, private pension fund assets fell from ¢28 billion in the fourth quarter of 2021 to ¢31.4 billion at the end of June 2022. .
According to the report, this performance can be attributed to increased contribution mobilization (through effective defaulter litigation) and favorable investment results.
“Macroeconomic conditions are expected to improve in the second half of the year to allow the private pensions industry to achieve a positive real rate of return on pension asset investments,” he said. he adds.