Amid rising financial pressures and ongoing economic challenges, Ghanaians are increasingly prioritizing savings as a means of securing long-term financial stability. According to the 2024 Old Mutual Financial Services Monitor, there has been a notable shift in behavior, with fewer individuals dipping into their savings to cover financial shortfalls. The report reveals a significant drop, with only 18% of working Ghanaians using their savings to meet immediate needs in 2024, compared to 61% in 2023.
This change highlights a growing emphasis on financial discipline and an effort to preserve savings for future needs. The report also underscores the continued reliance on informal savings mechanisms. Around 37% of working Ghanaians participate in Susu savings groups, while 28% prefer to keep unbanked cash on hand as a financial safety net. Additionally, mobile money usage remains high, with 46% of Ghanaians using mobile wallets to save money.
Despite the positive trend toward savings, the report also reveals a concerning gap in retirement planning. Only 33% of Ghanaians are actively saving for retirement, as many are prioritizing short-term goals like business investments, children’s education, and emergency funds. While savings for immediate needs are on the rise, retirement savings remain limited, presenting a challenge for future financial security.
Looking forward, analysts believe that the growing focus on savings—25% of household income is now being allocated to this purpose—could signal the start of a more financially secure future for many Ghanaians. Experts are urging individuals to diversify their savings strategy by exploring structured investment options like pension schemes and fixed deposits, which could offer better returns and long-term financial benefits.
SOURCE: CITI NEWSROOM