INVESTMENT RISKS AND SUSTAINABILITY OF OCCUPATIONAL PENSION FUND ASSET IN NIGERIA

Investment of occupational pension fund assets was intended to enhance retirement savings account balances of the employees. There have been growing concerns about the need to address the sustainability challenge of occupational pension fund assets in Nigeria. The study investigated the effect of investment risks on occupational pension fund assets in Nigeria. The study adopted a descriptive research design, using correlation and multiple regression analysis to analyze the data extracted from the distributed questionnaires. Taken investment risks proxy by (Purchasing power risk (PPR); market risk (MAR); interest rate risk (IRR); and business risk (BUR) as the set of independent variables, while occupational pension fund assets (PFA) are taken as the dependent variable. Population of the study comprised the risk management and compliance personnel of PFAs in Nigeria while the sample size comprised One hundred selected employees through purposive sampling technique. Ninety five (95) copies of returned questionnaire were analysed for the study. The findings of the study revealed that the set of independent variable (IRR) and (BUR) have significant effects on the dependent variable (PFA) with the coefficient (0.416 & 0.691) and associated probability (0.000 & 0.000) respectively. Also, set of independent variables (PPR) and (MAR) have effects but not significant on dependent variable (PFA) with coefficient (0.133 & 0.044) and associated probability (0.086 & 0.414) respectively. The study concludes that Investment Risks such as Purchasing power risk and Market risk significantly effects sustainability of pension fund assets in Nigeria. It also concludes that Investment Risks such as Interest rate risk and Business risk has effects but not significant on sustainability of pension fund assets in Nigeria. The study recommends that investment risks needs careful consideration when planning investment of pension fund assets in Nigeria.