An Investigation Into Pension Funds Survival Strategies In Zimbabwe Economy (2015-2022)

Author

Chibururu Lisa

Title

An Investigation Into Pension Funds Survival Strategies In Zimbabwe Economy (2015-2022)

Abstract

The study examined the survival strategies of pension funds in Zimbabwe. The investigation into the survival strategies of pension funds in the Zimbabwean economy was an important area of research because of the crucial role played by pension funds in providing financial security for workers in their old age.

The overall objective of the study was to investigate how pension funds managed to survive in the Zimbabwean economy during the period of January 2015 to December 2022. The study sought to examine the various strategies that pension funds in Zimbabwe adopted to ensure their survival, given the challenging economic environment they operated in. The study explored the factors that influenced the success or failure of these strategies and their impact on the performance of the pension funds.

The research was conducted using a mixed-methods approach, involving both quantitative and qualitative data collection and analysis. Primary data collection included the collection of data from a sample of 60 respondents, with 46 respondents returning the self-administered questionnaire. This was triangulated by data collected through interviews with 15 key informants. Secondary data in the form of literature relevant to the topic, as well as document review, was utilized. The researcher presented data in the form of tables, charts, and graphs using SPSS.

The researcher discovered that pension funds used retrenchment tactics, decentralized decision-making, diversification strategies, product differentiation, and other speculative inclinations. The researcher also discovered that IPEC was severely handicapped and had a less significant impact on the survival of pension funds in Zimbabwe's economy.

The researcher made the following recommendations: pension funds should consider investment portfolio composition to hedge against inflation and venture into non-core activities offering higher returns above inflation to survive. In Zimbabwe's economy, pension funds should also adopt decentralized decision making, differentiated services, and short-term planning horizons.

The researcher recommended further research on the analysis of the effectiveness of pension fund regulatory bodies in Zimbabwe and their impact on pension fund survival strategies. The researcher also recommended an investigation of the role of technology in pension fund survival strategies in Zimbabwe.

Date

June 2023

Publisher

BUSE

Keywords

Pension Funds

Survival

Strategies

Supervisor

N/A