An increasing percentage of working Ghanaians realise the significance of saving for retirement, yet only a small fraction are actively preparing for life after work, this is according to Old Mutual’s 2025 Financial Wellness Monitor.
According to the report, only 33% of Ghanaians in the workforce have made significant progress toward retirement planning, despite the fact that 92% of them recognise the importance of saving for retirement.
Despite early indications of economic recovery, the results reveal serious weaknesses in long-term financial readiness.
Growing worries about future financial security are highlighted by the report, which states that three out of four working Ghanaians feel they have not saved enough for retirement.
With 74% of respondents expressing uncertainty about whether their finances would be adequate in retirement, an 18 percentage-point increase in anxiety since 2023, confidence in retirement readiness is also declining. It affects people of all income levels.
Nearly two-thirds of higher-income earners, those making more than GHS 3,000 per month, remain unsure about their long-term financial security, indicating more significant behavioural and structural issues with Ghana’s savings culture.
The research lists a number of significant obstacles to saving for retirement. A low level of trust in financial institutions is demonstrated by the fact that over half of respondents, or roughly 52%, believe they would lose their savings if pension providers fail.
A further 55% anticipate family support in old age, and 32% say that the biggest barrier to regular saving is low income.
In terms of financial priorities, retirement preparation is likewise comparatively low, ranking seventh behind more pressing issues like emergency savings, education, and business investments.
The survey also suggests that the investment culture is deteriorating. Fewer people are making financial goals or regularly monitoring their accounts, and investment confidence has dropped from 21% to 14%.Professional financial advice is still hard to come by.
Although over 60% of Ghanaians who are employed recognise the value of expert financial advice, only 13% of them presently engage financial advisers.
Furthermore, nearly 50% of respondents claim they have no idea where to look for trustworthy financial guidance.
After more pressing demands like emergency cash, education, and company investments, retirement preparation is still ranked seventh among savings objectives.
Key limitations consist of:
*Low trust: 52% fear losing their savings if pension providers collapse* Cultural reliance: 55% expect family support in old age* Limited income: 32% cite lack of funds as the main barrier to saving.
The report cautions that many of these improvements are only temporary, even while some households are improving their financial circumstances by lowering debt and changing their spending patterns.
Many households may be vulnerable to future economic shocks if they continue to rely on unofficial savings schemes and make insufficient retirement plans.
In order to increase Ghanaian workers’ long-term financial resilience, the research emphasises the necessity of restoring public confidence in financial institutions, enhancing financial literacy, and expanding access to expert financial advice.
Source: newsthemegh.com