Factors affecting the growth of Individual Pension Schemes in Zambia
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Date
2024
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University of Lusaka
Abstract
The study's primary goal was to determine how fund governance, investment strategy, and operational efficacy affected pension systems' nationwide implementation. The study employed a descriptive research design. The study population for this study consisted of the 248 independent pension plans in Zambia that are mostly privately owned and compete with one another for members of the market. Sixty-three contribution managers were specially selected to respond to the surveys, and a total of 63 pension plans were selected at random. The numerical data was analysed with SPSS to produce tables, frequencies, and regression analysis. Microsoft Excel was utilised to produce the figures. The study's findings demonstrated that investing strategies significantly influence how rapidly pension plans grow. This implies that the expansion of individual pension systems is positively impacted by investment decisions. The findings also demonstrate that fund governance has a significant impact on the number of individual pension plans that grow in Zambia. It was shown that there is a strong correlation between operational effectiveness and the expansion of individual pension plans. It is suggested that the following rules be implemented in order to enhance the effectiveness of individual pension plans in light of the findings: they limit the size of the pension fund board, regulate investment policy, regulate compliance expenses, and regulate service provider performance monitoring. It is imperative that the PIA enhances its enforcement and compliance capacities to guarantee its ability to address new regulatory concerns in the present and the future. To encourage the sector's growth, investment regulations need to be revised. The pension business in Zambia is growing, but fund managers still need to identify and invest their money in securities that provide real returns.
Key Terms: Fund governance, Investment strategy, Operational efficiency, Pension fund