Pension fund management: a global perspective, Financial Management

Pension Fund Management: A Global Perspective

Pension funds are known worldwide more for their social security element. They have assumed more importance from the day the private sector has started replacing the state. In a pension fund system, any employee working with the state enterprise was saving in bits and pieces in the pension funds and was assured of his social security needs once he retired. In the absence of such a system, the employees have to save on their own and perhaps sometimes put in more hours of work to sustain. But with pension funds, employees of both state and private sector are assured of their future safety.

Over the last century, pensions have extended financial support to millions of retired people all over the world. However, due to the continuous bearish trend in the financial markets, most pension funds have turned red. The growing mismatch of assets and liabilities in pension funds has raised serious concerns about the future of the retirees.

Social security has been assuming centerstage ever since the collapse of the stock markets in the year 2000. Though initially, very few people were worried about the future of their social security, it has now transformed into a big crisis. A large population across the world is seriously affected by depreciation of funds investments. Pension funds riding high on the bull market of the late 1990s have promised more returns to investors than what can be really affordable.

 

Posted Date: 9/11/2012 1:44:12 AM | Location : United States







Related Discussions:- Pension fund management: a global perspective, Assignment Help, Ask Question on Pension fund management: a global perspective, Get Answer, Expert's Help, Pension fund management: a global perspective Discussions

Write discussion on Pension fund management: a global perspective
Your posts are moderated
Related Questions

Examine about the Risk-based auditing A risk based audit will be reviewing the risk management process and considering main risks of the organisation as a whole. Risk manage

Determine about the Zero Interest Bonds (ZIBs) Very much alike DDBs, only crucial difference is that these are issued at face values (DDBs are issued at a discount to face valu

Explain and derive the international Fisher effect. Answer:  The international Fisher effect can be acquired by combining the Fisher effect and the relative version of purchasi

What is the major difference in the obligation of one with a long position in a futures (or forward) contract in comparison to an options contract? Answer: A futures or forward c

An accounting technique that identifies the activities that a firm does, and then allocates indirect costs to products. An activity based costing (ABC) system finds the relationshi

No External Financing for New Proposals: If a firm have sufficient retained earnings with it as required by the new proposal, then the firm may not raise any external finance. In

applicability of an operating cycle in vegetable growing business

What is behind the wave of mergers in the banking industry? A: Various economic factors have caused banking institutions to merge over the past various years. These factors inclu

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects? The coefficient of variatio