Finacial Sustainability and Pension Fund Performance in Nigeria: The Effects of Inflation Rates
DOI:
https://doi.org/10.61143/umyu-jafr.2(2)2021.004Keywords:
Pension Fund, Sustainability, Performance, InflationAbstract
This study examines the effect of inflation rates on financial sustainability and pension fund performance in Nigeria with a view to determine what role inflation play in financial sustainability and pension fund performance for period of 10 years (2011 –2020) with a data set of fifteen sampled pension funds. Using panel regressionmodel, the fixed effects results indicated that size, age and inflation rate hassignificant effects on financial sustainability and performance of pension fund inNigeria. However, while size and age were having positive and statisticallysignificant, inflation was found to be having negative and statistically insignificanton the financial sustainability and performance of pension fund in Nigeria. Also, netincome was found to have insignificant negative effect of the financial sustainabilityand performance of pension fund in Nigeria. Hence, the study concluded that sizeand age are good indicator of financial sustainability and performance of pensionfund in Nigeria while, inflation rates appears to have eroded the gain made by thisorganizations. Therefore, there is the need for the pension fund manager to watchkeenly the trend of inflation rate while striving to sustain the financial stability andthe performance of the pension funds in Nigeria. Also, there is the need for thepension funds continuity as the size and age of the pension funds help to sustain theirfinancial stability and pension fund performances.
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