Implementation of Pension Funds Survival Strategies in a Hyperinflationary Economy. A Case of Pepukai Assurance Company

Munashe T. Ziyambi and Newman Wadesango
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Munashe T. Ziyambi: Midlands State University, Zimbabwe
Newman Wadesango: University of Limpopo, Republic of South Africa

CECCAR Business Review, 2024, vol. 5, issue 11, 58-73

Abstract: In hyperinflationary economies, pensioners often face severe economic hardships despite years of contributions to pension funds. This research investigates the survival strategies employed by Pepukai assurance company to protect pension funds under these challenging conditions. Using a quantitative approach, the study collected data through questionnaires, which were analyzed with the SPSS statistical tool and quantified using a Likert scale. A purposive sampling method was employed to ensure the relevance of surveyed participants. The analysis identifies several critical factors influencing the success of pension fund strategies, including decreased purchasing power, heightened market and investment risks, political instability, and challenges in asset allocation and liability management. Although the company’s strategies such as effective risk management, diversification, currency hedging, skilled management, and client education were implemented, their efficacy was undermined by current hyperinflation. This study contributes to existing literature by highlighting the complexities of managing pension funds in hyperinflationary environments and emphasizes the need for comprehensive investment policies, regular strategy reviews, alternative investment considerations, and the maintenance of sufficient liquidity. These insights are essential for pension fund managers and policymakers aiming to enhance the resilience of pension systems in volatile economic landscapes.

Keywords: pension funds; survival strategies; hyperinflationary economy; policies (search for similar items in EconPapers)
JEL-codes: E31 G22 J32 M41 M49 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:5:y:2024:i:11:p:58-73

DOI: 10.37945/cbr.2024.11.07

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