Abstract:

The article examines the effect of Pension Funds on the emerging economy of Ghana with the search light on the operations of Ghana’s flagship Pensions facility. In conducting the study, purposive sampling technique was employed to select senior officials of Social Security and National insurance Trusts (SSNIT) whose job descriptions hinge upon Pension fund investments, operations as well as monitoring and evaluations within the compliance enclave of the organization for their views on the objectives of the study. The questionnaire technique constitutes the main research instrument. The study noted that, like other nations of the world, Ghana feels it an obligation and responsibility to plan for and enable financial security for its elderly citizens and retirees and this is achieved through the establishment and nurturing of the pension fund. Growing the latter entails investing funds in stocks of corporations, buying government bonds as well as influencing infrastructural growth in the health, education and Security including housing sectors of the economy. The study recommended that taking cognizance of the long-term nature of the SSNIT’s Pension funds, the economy of Ghana will grow much faster if funds were invested in heavy Transport projects, more Utility projects and world class Communication projects. This will not only accelerate the rate of economic growth but also help ease pressure on government employing scarce tax revenue towards undertaking such badly needed developmental but capital-intensive infrastructure and social amenities.

Keywords: Pension schemes, Funding, Sustainability, Aging, Pension tiers.

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