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Impact of Pension and Gratuity Management on Employee Retirement Security in Nigeria

Onyeka-Iheme Vic PhD, Pelumi Nafisat Salami, Omojola Oreoluwa, Ismail Gimba

Abstract

This study examines the impact of pension and gratuity management on employee retirement security in Nigeria, against the backdrop of persistent concerns about retirees' welfare despite ongoing pension reforms. Specifically, the study evaluates the effectiveness of the Contributory Pension Scheme , the regularity and adequacy of gratuity payments, the impact of pension fund investment performance, and the role of institutional and regulatory factors in shaping retirement outcomes. A descriptive survey research design was adopted, with data collected from 380 respondents comprising public sector employees, retirees, and pension fund administrators across six geopolitical zones in Nigeria. Data were analysed using descriptive statistics, multiple regression analysis, and Chi-square test. The findings reveal that while the CPS has improved pension fund accumulation, it has not fully guaranteed retirement security due to irregular employer remittances and low real investment returns. Gratuity payments were found to be significantly delayed, particularly at the state level, thereby negatively affecting retirees' standard of living. Regression results indicate that CPS effectiveness, gratuity regularity, pension investment performance, and institutional quality all have significant positive effects on retirement security. The study concludes that although Nigeria's pension reforms are structurally sound, weak institutional enforcement, administrative inefficiencies, and poor fund performance continue to undermine their effectiveness. It recommends stronger regulatory enforcement, improved investment diversification, and the establishment of mechanisms to ensure timely gratuity payments.

Keywords

Pension ManagementGratuityRetirement SecurityContributory Pension SchemeNigeria. JAFM

References

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