Kumasi:Dr. Cassiel Ato Baah Forson, the Minister of Finance, has emphasized the critical role of fiscal discipline and economic stability in safeguarding pension fund investments and ensuring the security of workers' retirement benefits. He highlighted that fluctuations in inflation, interest rates, and exchange rates, along with unsustainable public debt levels, can negatively impact investment returns and weaken confidence in the financial system.
According to Ghana News Agency, Dr. Forson stressed that sound fiscal policies are essential for effective pension management, as the performance and value of pension assets are partly reliant on the national economy's stability. He remarked, "Good fiscal policy is also pension policy," during a speech delivered on his behalf at the Fourth Annual General Meeting of the Health Sector Occupational Pension Scheme in Kumasi.
He noted that pension funds serve not only as social security instruments but also as significant sources of long-term domestic capital, which can support productive investments while ensuring retirement income for workers. Dr. Forson pointed out that Ghana's pension industry has become a major component of the financial system, with total pension assets under management rising from GHS 86.09 billion in 2024 to GHS 111.11 billion in 2025, as per the 2025 annual report of the National Pensions Regulatory Authority (NPRA).
The Finance Minister also underscored the importance of prudent investment management, strong governance, and transparency in protecting the accumulated savings of workers. He warned that pension funds could increase in nominal value without necessarily providing adequate returns to members, especially when inflation erodes their purchasing power. As such, investment decisions must consider real returns, diversification, liquidity, risk management, and the long-term obligations of pension schemes to their members.
Dr. Forson mentioned that the government's fiscal consolidation efforts are crucial in maintaining investor confidence and creating a stable environment for pension funds to preserve and grow their assets. The 2026 Budget targets a primary surplus of 1.5 percent of GDP, with an overall fiscal deficit projected at 2.2 percent of GDP. The government is also committed to debt sustainability through a disciplined medium-term fiscal framework.
He highlighted that pension funds could significantly contribute to financing Ghana's development, especially in addressing the country's infrastructure deficit, if investments are structured to protect contributors' interests. Dr. Forson advocated for developing structured infrastructure investment vehicles with clearly defined risks, transparent governance, and predictable cash flows, enabling pension funds to participate in national development without compromising their primary duty of securing workers' retirement benefits.
Dr. Forson also reflected on the lessons from the Domestic Debt Exchange Programme (DDEP), noting that pension funds should not merely be treated as convenient sources of government financing. He emphasized that pension assets belong to workers and require sound fiduciary management, transparency, and appropriate risk-sharing arrangements.