Assessment of Financial Sustainability of Pension Funds in Kenya - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Assessment of Financial Sustainability of Pension Funds in Kenya write by Vincent Amurono. This book was released on 2024-05-16. Assessment of Financial Sustainability of Pension Funds in Kenya available in PDF, EPUB and Kindle. Bachelor Thesis from the year 2024 in the subject Business economics - Investment and Finance, grade: 1, , course: Department of mathematics and Computer Science, language: English, abstract: Pension funds are integral to ensuring financial security in retirement and fostering economic stability. In Kenya, the sustainability of these funds is crucial for supporting aging populations and facilitating long-term investment. This research project undertakes a comprehensive assessment of the financial sustainability of pension funds in Kenya, examining key factors influencing their viability and effectiveness. The study evaluates the current financial status of pension funds, analyzing asset-liability dynamics, investment strategies, and regulatory frameworks. It also investigates demographic trends. The study employs actuarial techniques and methodologies to analyze data, model future scenarios, and evaluate the risks and opportunities facing pension funds in Kenya. By examining demographic trends, inflation rates, Investment portfolio and regulatory requirements, the research aims to provide insights into the factors influencing the financial sustainability of pension funds. The findings highlight the importance of enhancing regulatory oversight, optimizing investment strategies, and addressing demographic shifts to ensure the long-term sustainability of pension funds in Kenya. The research concludes with actionable recommendations aimed at strengthening the pension system and supporting the financial well-being of retirees and the broader economy. Ultimately, this research contributes valuable insights to policymakers, regulators, and pension fund stakeholders, guiding efforts to enhance the resilience and effectiveness of Kenya's pension system in the face of evolving demographic and economic challenges.
An Assessment of the Financial Sustainability of Social Security Schemes in Kenya
An Assessment of the Financial Sustainability of Social Security Schemes in Kenya - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook An Assessment of the Financial Sustainability of Social Security Schemes in Kenya write by William Ambaka Akwimbi. This book was released on 2014. An Assessment of the Financial Sustainability of Social Security Schemes in Kenya available in PDF, EPUB and Kindle. Social Security schemes play a major role in the fight against poverty. They are arrangements that ensure society take measures to protect members against economic and social distress occasioned by loss of income or reduced earnings resulting from sickness, maternity, employment, injury, invalidity, old age and loss of breadwinner. However, such institutions have of late been plagued with the problems of lack of sustainability and insufficient funds. This paper examines the major features of the Kenyan social security system with a focus on Pension schemes (i.e. systems that provide financial security for the old) to assess the principle challenges to the financial sustainability. The findings show that there were five basic challenges that were particularly critical in the context of Kenya: inadequate regulatory capacity; imprudent investment, macroeconomic instability; poor corporate governance; inability to extend coverage; and design issues such as choices between DB and DC schemes, funding versus PAYGO principles and public versus private management. The major recommendations proposed to address these issues include reforming and enactment of adequate legal and institutional framework, extension of coverage to include both formal and informal sectors, undertake sound investment projects, improve corporate governance, lower administrative costs by implementing time and cost effective operational systems, institute parametric reforms, reform the PAYGO social security system, institute administrative and design changes to reduce contribution evasion. This will be in addition to the government measures to stabilize the macroeconomic environment.
Evaluating the Financial Performance of Pension Funds
Evaluating the Financial Performance of Pension Funds - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Evaluating the Financial Performance of Pension Funds write by Richard Hinz. This book was released on 2010-01-14. Evaluating the Financial Performance of Pension Funds available in PDF, EPUB and Kindle. Countries around the world are increasingly relying on individual pension savings accounts to provide income in old age for their citizens. Although these funds have now been in place for several decades, their performance is usually measured using methods that are not meaningful in relation to this long-term objective. The recent global financial crisis has highlighted the need to develop better performance evaluation methods that are consistent with the retirement income objective of pension funds. Compiling research derived from a partnership among the World Bank, the Organisation for Economic Co-operation and Development (OECD), and three private partners, 'Evaluating the Financial Performance of Pension Funds' discusses the theoretical basis and key implementation issues related to the design of performance benchmarks based on life-cycle savings and investment principles. The book begins with an evaluation of the financial performance of funded pension systems using the standard mean variance framework. It then provides a discussion of the limitations inherent to applying these methods to pension funds and outlines the many other issues that should be addressed in developing more useful and meaningful performance measures through the formulation of pension-specific benchmark portfolios. Practical implementation issues are addressed through empirical examples of how such benchmarks could be developed. The book concludes with commentary and observations from several noted pension experts about the need for a new approach to performance measurement and the impact of the recent global financial crisis on pension funds.
Effect of Corporate Governance, Investment Strategy and Macroeconomic Factors on Financial Performance of Pension Schemes in Kenya
Effect of Corporate Governance, Investment Strategy and Macroeconomic Factors on Financial Performance of Pension Schemes in Kenya - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Effect of Corporate Governance, Investment Strategy and Macroeconomic Factors on Financial Performance of Pension Schemes in Kenya write by William Akwimbi. This book was released on 2020. Effect of Corporate Governance, Investment Strategy and Macroeconomic Factors on Financial Performance of Pension Schemes in Kenya available in PDF, EPUB and Kindle. Pension schemes form a significant part of the global investment portfolio. In Kenya, they hold over 13% of the country's GDP (OECD, 2018). Their importance is underscored by the fact that they contribute significantly to growth and development of world economies (Kakwani, Davis, 2005; Heijdra, Ligthart & Jency, 2006). Their financial performance is critical to the provision of retirement benefits. Khan, Nouman & Imran (2015) observed that the financial performance indicates measures to which economic goals of an organisation has been accomplished over particular time period. Pension schemes however, face numerous challenges that can render the generation of retirement benefits inadequate. A number of studies have been undertaken to evaluate the impact of factors that influence performance of pension funds resulting in mixed and sometimes inconclusive findings. This study sought to assess the effect of corporate governance, investment strategy, interest rate, inflation rate, exchange rate and GDP growth rate on performance of pension funds in Kenya. The study was done using annual data on pension funds and economic indicators spanning the period 1997 to 2018. In addition, it used questionnaires to gather data on corporate governance and investment strategy indices.Quantitative and correlational research design using Linear regression model was used to assess the effect of corporate governance, investment strategy, interest rate, inflation rates, GDP growth rates and exchange rate on pension performance. The study findings show that these factors had significant impact on pension funding. They however, varied on their individual contribution to the prediction of funding level of each pension fund.The study concludes that pension fund management and policy makers should take into consideration the effects of macroeconomic factors, corporate governance and investment strategy in decision making on investment plans to ensure generation of adequate funds to fulfill their key objective of providing retirement benefits to the members.
Assessing Chile's Pension System: Challenges and Reform Options
Assessing Chile's Pension System: Challenges and Reform Options - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Assessing Chile's Pension System: Challenges and Reform Options write by Samuel Pienknagura. This book was released on 2021-09-10. Assessing Chile's Pension System: Challenges and Reform Options available in PDF, EPUB and Kindle. Chile’s pension system came under close scrutiny in recent years. This paper takes stock of the adequacy of the system and highlights its challenges. Chile’s defined contribution system was quite influential when introduced, and was taken as an example by other countries. However, it is now delivering low replacement rates relative to OECD peers, as its parameters did not adapt over time to changing demographics and global returns, while informality persists in the labor market. In the absence of reforms, the system’s inability to deliver adequate outcomes for a large share of participants will continue to magnify, as demographic trends and low global interest rates will continue to reduce replacement rates. In addition, recent legislation allowing for pension savings withdrawals to counter the effects from the COVID-19 pandemic, is projected to further reduce replacement rates and increase fiscal costs. A substantial improvement in replacement rates is feasible, via a reform that raises contribution rates and the retirement age, coupled with policies that increases workers’ contribution density.
