Assessing the impact of macroeconomic variables on pension benefits in Ghana: A case of Social Security and National Insurance Trust
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | Assessing the impact of macroeconomic variables on pension benefits in Ghana: A case of Social Security and National Insurance Trust | |
| Creator | Ofori-Abebrese, Grace Pickson, Robert Becker Abubakari, Sherifatu | |
| Description | Background: One of the most pressing phases for all economic agents is post-retirement standard of living. Irrespective of the higher returns on pension contribution and varied pension reforms, there are possible factors that can render these pension benefits inadequate, which can affect the longevity of retirees. Studies conducted in other countries have concluded that inflation deteriorates the value of pension benefits. Aim: This study, thus, sought to assess the impact of some major economic indicators in the Ghanaian environment on pension benefits.Setting: This study was carried out in Ghana by obtaining quarterly data frequencies on pension benefits and economic indicators spanning the period 2000Q1 to 2014Q4.Method: The Auto-regressive Distributed Lag Model was utilised to examine the long run and short run dynamics of some major economic indicators and pension benefits.Results: The empirical evidence indicated that inflation deteriorates total pension benefits. Increasing monetary policy rate and depreciation of the domestic currency should be an issue to contend with only in the short run rather than in the long run. The study also found the prominence of the implementation of the National Pension Reform in 2008.Conclusion: The study concluded that if policy makers target the reduction in the monetary policy rate and the appreciation of the domestic currency in an effort to stabilise the value of total pension benefits in the long run, it would not be effective in the long run because of their insignificant nature. Policy makers should rather target inflation as the prime tool for stabilising the standard of living of retirees in the long run. | |
| Publisher | AOSIS Publishing | |
| Date | 2017-10-24 | |
| Identifier | 10.4102/sajems.v20i1.1703 | |
| Source | South African Journal of Economic and Management Sciences; Vol 20, No 1 (2017); 10 pages 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/1703/935
https://sajems.org/index.php/sajems/article/view/1703/934
https://sajems.org/index.php/sajems/article/view/1703/936
https://sajems.org/index.php/sajems/article/view/1703/925
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