Editorial: Boost Pension Funds with Diverse Portfolios – An International Perspective

Proper administration of pension funds plays a crucial role in enhancing the quality of life for retirees and supplies long-term financial resources that can be directed towards infrastructure, real estate, renewable energy initiatives, and development programs.

Consequently, Chief Executive Officer of National Pensions Regulatory Authority, Christopher Boadi-Mensah, is urging fund managers to broaden their investment portfolios in order to minimize risks and enhance returns for the sake of national progress.

As the administrations of numerous developing nations face changing population dynamics, increasing longevity, and a growing unofficial economy, discussions about investment strategies and pension management have become increasingly critical.

These remarks were made by Mr. Boadi-Mensah during The Money Summit 2025, which was organized by Business and Financial Times in Accra not long ago.

Given that a significant 80 percent of Ghana’s workforce operates within the informal sector and remains unregulated — implying they are not part of any structured pension system — Mr. Boadi-Mensah is advocating for expanding coverage to include these employees.

He stated that refusing these industrious citizens, who make considerable contributions to the national economy, any form of retirement security “is not merely a matter of public policy; it is an issue of social equity.”

As a result, the National Pensions Regulatory Authority has created a micro-pension regulatory framework designed to cater to the patterns and requirements of informal sector workers, aiming to enhance inclusivity for pension funds in Ghana.

This structure supports contributions on a daily, weekly, or monthly basis and caters to both long-term and annuity-style retirement choices.

He mentioned that the authority is collaborating with various parties to develop reward systems aimed at informal sector employees. This involves matching contributions as well as providing tax breaks to promote wider involvement.

To enhance accessibility, NPRA is utilizing technology to create a responsive and dependable specific digital platform known as the Pension Digital Ecosystem. This ecosystem aims to streamline the process of joining and accessing benefits seamlessly.

Regarding the topic of diversifying pension fund investments, Mr. Boadi-Mensah emphasized the importance of managing their risk exposure to government securities and bonds, which may conceal potential dangers.

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