An Assessment of the Impact of Contributory Pension Scheme to Nigerian Economic Development

Abstract

This research work is focused on the assessment of the impact of Contributory Pension Scheme to Nigerian Economic Development with relevance to Pension Fund Manager. The objective of this study was to examine how contributory pension scheme influence the Gross Domestic Product (GDP) in Nigeria. More so, this study is aimed at suggesting the best reliable way for tackling or handling the fear that the funds or Retiree Savings Account (RSA) contribution can be mismanaged by the existing trustees. The main problem of the study was centered on the nature and effect of risk prevailing in the pension assets management. The researcher designed the study using survey design and sample size was taken as 30 and 70 for both staff and customers respectively. Data were collected from both primary and secondary sources and analyzed using percentage. The researcher adopted correlation analysis for testing secondary data and ANOVA for the primary data. The result of correlation analysis using t-test revealed that Contributory Pension Scheme (CPS) has significant impact on the GDP while the result of ANOVA revealed that risk prevalent has positive effect on the pension fund management. The researcher therefore, recommends that the Pension Fund Administrators should invest in less risky portfolio to enhance prompt payment of pension to retirees.