Effect of Pension Fund Assets and Savings on Pension Fund Performance in Nigeria

Abstract

This study examined the effect of pension fund assets and savings on pension fund performance in Nigeria from 2013 to 2022. Ex post facto research design was adopted, while data on benefits paid, pension fund assets and pension fund savings were collected from the Central Bank of Nigeria statistical bulletin, quarterly publications of the National Pension Commission as well as the National Bureau of Statistics Economic reports. The data collected was analysed using Ordinary Least Squares Regression. The findings show that Pension Fund Assets have a negative significant impact on Benefits Paid in Nigeria. In contrast, Pension Fund Savings is statistically significant in explaining the variation in Benefits Paid in Nigeria. This study therefore recommended that since Pension Fund Assets shows a negative relationship with Benefits Paid, it suggests that as pension fund assets increase, benefits paid out decrease, and vice versa. Pension fund managers should reevaluate their asset allocation strategies to ensure they align with the fund's objectives and liabilities. They may consider allocating assets towards investments that offer stable returns and liquidity to meet benefit payment obligations while maintaining a prudent level of risk.