Fineboy Ikechi Joseph 1 , John Uzoma Ihendinihu 2 , Kelechi C. Nwankwo 3
1&3 Department of Accounting, Faculty of Social and Management Sciences, Clifford
University, Owerrinta, Ihie, Abia State, Nigeria. E-mail: &
2 Department of Accounting, College of Management and Social Sciences, Michael Okpara
University of Agriculture, Umudike, Abia State, Nigeria. E-mail:

Though the Pension Reform Act, 2004 is steered by the main principles of sustainability,
accountability, equity, flexibility and practicability, fears are entertained that the financial assets
or Retirees Savings Account (RSA) contributions is not adequately managed by the existing
trustees, this has raised eyebrows and researches on the effect of pension fund on standard of
living in Nigeria. As a result, this study examines the effect of pension contributory fund on the
standard of living of Nigerians. The study adopted an ARDL model to test hypothesis of variable
data gotten from 2010 to 2020 in Nigeria. Findings reveal that both employers and employees’
pension funds share have negative significant effect on the standard of living of Nigerians, while
combined employers and employees’ pension funds share has a positive significant effect on the
standard of living of Nigerians. It is recommended that, government should continuously set up
audit mechanisms that will checkmate corruption in pension fund management as well as put in
place effective investment plans to ensure that pension funds are appropriately invested. This will
bring the desired economic outcomes that will improve the standard of living of both pensioners
and Nigerians.
Keyword: Employers’ pension funds share, employee’ pension funds share, combined pension
fund and standard of living.

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