Impact of Macroeconomic Variables on Performance of Pension Funds: An Econometric Analysis

Neha Mangla, Kavita Indapurkar

2023

Abstract

Retirement is a natural phase of life when after a certain age individual’s cease to work or reduce their work hours. Retiring successfully can be ensured if one attains self-sufficiency in terms of wealth by the time of retirement. Retirement planning is the process of making your money work for you in order to help you achieve your goals and maintain your quality of life in later years. Like many other developing countries, there is no social security system in India to protect the elderly from financial deprivation. The pension system in India relies on employer and employee participation and contribution. Investing in Pension plans provide financial support and stability to retirees when they cease to have a steady source of income. The returns on pension funds are thus a key determinant of who enrolls in these schemes and how much money is generated for retirement. This study investigates the impact of select macroeconomic variables, Gross Domestic Product (GDP), exchange rate, money supply, inflation and unemployment on pension fund returns in India using time series analysis. The study shows that changes in GDP significantly impact returns on pension funds especially post the COVID-19 lockdown. While changes in exchange rate significantly impact returns on state government pension funds, changes in inflation is a significant factor impacting returns on equity driven pension funds

Paper Citation

in Harvard Style

Mangla N. and Indapurkar K. (2023). Impact of Macroeconomic Variables on Performance of Pension Funds: An Econometric Analysis. In Proceedings of the 1st Pamir Transboundary Conference for Sustainable Societies - Volume 1: PAMIR; ISBN 978-989-758-687-3, SciTePress, pages 739-748. DOI: 10.5220/0012502800003792

in Bibtex Style

@conference{pamir23,
author={Neha Mangla and Kavita Indapurkar},
title={Impact of Macroeconomic Variables on Performance of Pension Funds: An Econometric Analysis},
booktitle={Proceedings of the 1st Pamir Transboundary Conference for Sustainable Societies - Volume 1: PAMIR},
year={2023},
pages={739-748},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012502800003792},
isbn={978-989-758-687-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Pamir Transboundary Conference for Sustainable Societies - Volume 1: PAMIR
TI - Impact of Macroeconomic Variables on Performance of Pension Funds: An Econometric Analysis
SN - 978-989-758-687-3
AU - Mangla N.
AU - Indapurkar K.
PY - 2023
SP - 739
EP - 748
DO - 10.5220/0012502800003792
PB - SciTePress