Retirement Savings Awareness High, Action Low Among Ghanaians
A striking 92% of working Ghanaians understand that saving for retirement is crucial. However, only 33% are actually putting money aside for their future retirement. This stark finding comes from the latest Old Mutual Financial Wellness Monitor report released in 2025. The report surveyed urban and peri-urban workers earning GHS 1,200 or more.
This gap highlights a significant vulnerability in long-term financial planning. Despite overall improvements in economic confidence, with confidence in Ghana's economy more than doubling to 48% from 22% in the previous year, and financial stress halving to 30%, the issue of retirement savings remains unresolved. Seven in ten respondents believe the economy will improve, and nearly 80% expect their personal finances to get better within six months. This improved financial breathing room, according to Roy Punungwe, CEO of Old Mutual Group Ghana, allows people to be more intentional about managing debt and spending.
The report places retirement savings as only the seventh priority among Ghanaian workers. This contrasts sharply with other savings goals such as emergency funds, children's education, and business continuity. These short-term goals indicate a focus on immediate stability rather than long-term wealth creation. Savings are predominantly held in bank accounts (57%), mobile money (50%), and informal Susu schemes (44%), with only a small portion kept outside formal channels.
Roy Punungwe elaborated on the disconnect. "There is a clear gap between intention and action when it comes to long-term financial planning," he stated. He noted that short-term pressures, limited trust in financial systems, and a lack of guidance hinder Ghanaians from securing their future. Adding to this challenge is a significant financial advice gap, with only 13% of working Ghanaians using a financial adviser. Many are unsure whom to approach for expert financial guidance.
The implications of this findings are significant. While Ghanaians are experiencing short-term financial relief, the lack of retirement planning could lead to widespread financial insecurity in old age. This presents a critical opportunity for financial institutions to develop tailored products and educational initiatives. Policymakers may also need to consider interventions to encourage long-term savings, such as incentives or improved pension schemes. The trend of poly-jobbing, where 27% combine formal employment with side hustles, also points to job security concerns that indirectly affect long-term financial strategies.