A new report by Old Mutual reveals that while working Ghanaians are experiencing a significant financial recovery, marked by doubled economic confidence and halved financial stress, a critical gap persists in retirement savings, investment confidence, and access to professional financial advice. The 2025 Old Mutual Financial Wellness Monitor, surveying urban and peri-urban workers aged 20-59 earning GH¢1,200+, highlights a paradoxical situation where immediate financial pressures ease, yet long-term security remains a significant concern.
Economic Confidence Surges, Financial Stress Declines
Confidence in the Ghanaian economy has surged to 48 per cent, more than doubling from 22 per cent a year ago, with seven in ten respondents anticipating economic improvement. This optimism extends to personal finances, as nearly 80 per cent expect their situation to improve within six months.
Financial stress has dramatically decreased to a three-year low of 30 per cent, down from 60 per cent. This improvement is attributed to better debt management, increased income, and growing emergency savings.
Roy Punungwe, CEO of Old Mutual Group Ghana, noted that this resilience is building but remains fragile. He observed that in a more stable economic environment, Ghanaians are becoming more intentional about managing debt, controlling spending, and rebuilding savings.
Income Growth Amidst Persistent Vulnerabilities
Over a third (37 per cent) of respondents report higher incomes compared to the previous year, with younger and higher-income earners seeing the most substantial gains. Despite this, income security remains a concern, with 39 per cent fearing job loss and nearly half unable to sustain themselves for three months without income.
To counter this, many are diversifying income. Over a quarter (27 per cent) are now engaged in “poly-jobbing,” combining formal employment with side hustles or freelancing. This trend is most prevalent among those aged 20-29, reflecting job market uncertainties.
Cautious Spending and Short-Term Savings Dominate
Expense control has emerged as the second-highest financial priority, following income security. While debt worries have eased, with 67 per cent reporting less debt, over half admit to frequent overspending.
Savings behaviour is strengthening, with 24 per cent of household income now allocated to savings and 80 per cent having savings goals. However, these savings are predominantly short-term and informal, held in bank accounts, mobile money, or Susu schemes. Only a fifth keep cash savings outside formal channels.
Leading savings goals include emergency funds, children’s education, and business continuity, indicating a focus on immediate needs rather than long-term wealth accumulation.
Retirement Preparedness Gap Widens Dramatically
A striking 92 per cent of working Ghanaians recognize the importance of retirement saving, an increase from 83 per cent in 2024. However, retirement ranks only seventh in savings priorities, with just one in three actively saving for it.
Confidence in investment decisions is declining, with only 14 per cent feeling very confident, down from 21 per cent last year. Risk aversion is also rising, with fewer individuals willing to take substantial financial risks for higher returns.
Punungwe highlighted a clear disconnect between the intention to save for retirement and the action taken, citing short-term pressures, limited trust, and a lack of guidance as key barriers.
The Financial Advice and Support Gap
Only 13 per cent of working Ghanaians utilize financial advisers, despite these individuals reporting higher confidence in their financial decisions. Almost half are unsure where to seek reliable financial advice, presenting a significant opportunity for the financial services sector.
The burden on the “sandwich generation,” those supporting both children and adult dependents, has eased, declining to 31 per cent from 42 per cent in 2023.
Entrepreneurship remains a cornerstone of the economy, with 41 per cent owning businesses, primarily funded through profits, with only 6 per cent accessing formal financial services for business financing.
Overall Wellbeing Linked to Financial Stability
Despite positive economic indicators, over 40 per cent of working Ghanaians rate their overall wellbeing as poor, with a strong correlation to income levels. Just 13 per cent feel they possess the financial freedom to live without significant financial pressure.
The Old Mutual report concludes that Ghana is transitioning from survival to recovery, but sustainable financial wellness hinges on greater engagement with formal financial solutions, enhanced financial literacy, and increased trust in the financial system. Old Mutual aims to build this trust and provide guidance to help Ghanaians achieve long-term financial security.
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