Dr Cassiel Ato Baah Forson, Minister of Finance, has emphasised the importance of fiscal discipline and economic stability in protecting pension fund investments and securing workers’ retirement benefits.
He said fluctuations in inflation, interest rates and exchange rates, as well as unsustainable public debt, could undermine investment returns and weaken confidence in the financial system.
Dr Forson said sound fiscal policies were, therefore, essential to pension management because the performance and value of pension assets were partly dependent on the stability of the national economy.
“Good fiscal policy is also pension policy,” he said in a speech read on his behalf at the Fourth Annual General Meeting (AGM) of the Health Sector Occupational Pension Scheme in Kumasi.
The meeting was held on the theme: “Strengthening Pension Security Through Smart Investments, Good Governance and a Sustainable Future.”
Dr Forson said pension funds were not merely social security instruments but also significant sources of long-term domestic capital that could support productive investments, while providing retirement income for workers.
He said Ghana’s pension industry had grown into a major component of the financial system, with total pension assets under management increasing from GHS 86.09 billion in 2024 to GHS 111.11 billion in 2025, according to the 2025 annual report of the National Pensions Regulatory Authority (NPRA).
He said the growth underscored the need for prudent investment management, strong governance and transparency to protect the accumulated savings of workers.
The Finance Minister noted that pension funds could increase in nominal value without necessarily delivering adequate returns to members, particularly, when inflation eroded their purchasing power.
He said investment decisions must, therefore, consider real returns, diversification, liquidity, risk management and the long-term obligations of pension schemes to their members.
Dr Forson said the government’s fiscal consolidation efforts were important to maintaining investor confidence and creating a stable environment for pension funds to preserve and grow their assets.
He said the 2026 Budget targeted a primary surplus of 1.5 per cent of Gross Domestic Product (GDP) on a commitment basis, while the overall fiscal deficit was projected at 2.2 per cent of GDP.
He said the government was also committed to debt sustainability through a medium-term fiscal framework anchored in discipline and responsible borrowing.
“These are not abstract macroeconomic numbers, they affect the savings of every pensioner,” he said.
The Finance Minister said pension funds could play a greater role in financing Ghana’s development, particularly in addressing the country’s infrastructure deficit, provided the investments were structured to protect contributors’ interests.
He said infrastructure development should not depend solely on tax revenues and government borrowing, adding that, domestic institutional investors could provide long-term capital for viable projects.
He called for the development of properly structured infrastructure investment vehicles with clearly defined risks, transparent governance arrangements and predictable cash flows.
Dr Forson said such arrangements would enable pension funds to participate in national development without compromising their primary responsibility to secure workers’ retirement benefits.
He also acknowledged the lessons of the Domestic Debt Exchange Programme (DDEP), saying, the experience demonstrated that pension funds should not be treated simply as convenient sources of government financing.
He said pension assets belonged to workers and required sound fiduciary management, transparency and appropriate risk-sharing arrangements.