Role of pension management on economic growth: A review of literature

Abstract

Pension funds enable individuals to save over their working lives to finance their consumption needs in retirement, either through a lump sum or through the provision of an annuity, while also supplying funds to end-users such as corporations, other households (via securitized loans), or governments for investment or consumption. The study's goal is to investigate the impact of pension management on economic growth. A desktop literature review was used for this purpose. Relevant seminal references and journal articles for the study were identified using Google Scholar. The inclusion criteria entailed papers that were not over ten years old. The study concluded that contributory pensions have the potential to increase GDP with competent risk and portfolio management by pension fund administrators and custodians (GDP). The findings indicated a positive relationship between retirement pension assets and economic growth. The study recommends that policymakers and pension fund regulators devise feasible methods for investing pension money to benefit the economy while also maintaining the safety of the invested assets so as not to risk the interests of pension fund owners. To enhance economic growth, the study also suggested eliminating pension fund management delays, administrative bottlenecks, and corruption.