Impact of Inflation on Pension Fund of the Nigerian Pension Industry

This study was on the impact of inflation on the pension fund of the Nigerian pension industry. The specific objectives were to investigate the impact of inflation rate on private sector contribution to total pension fund' to examine the impact of inflation rate on public sector contribution to the total pension fund, and to analyze the impact of inflation rate on a total pension contribution. The study used Ex-post facto research design. Three hypotheses were formulated and tested using Ordinary least square regression as an analytical technique. It was found that the inflation rate did not significantly impact on private sector contribution to the total pension fund; inflation rate did not significantly impact on public sector contribution to the total pension fund, and inflation rate did not significantly impact on a total pension contribution. Based on the findings of the study it was concluded that the inflation rate did not significantly impact on pension fund of the Nigerian pension industry. It was recommended that effort should be put in place to reduce the level of inflation in Nigeria. This will reduce the strain on disposal income of people who due to high prices of goods and services are pressured to spend almost all they earn to feed. By reducing inflation, the public would have more savings and be able to contribute to a pension fund. In addition, the pension industry should invest in only inflation-adjusted financial instruments. This will minimize the pull of inflation on the income from such investment. By such investment, the industry would have put the contributions they generate to significant use