At the end of 2018, the Global Pension Industry had an estimated asset under management (AuM) of $41.4 trillion which represents 53.9% of global assets under management. This significant asset size reflects the growing institutionalisation of retirement planning across the world. In the same period, Nigeria’s Pension fund stood at ₦8.6 trillion ($23.9 billion), 13.4% higher than the previous year and represents a 17.6% compounded annual growth rate (CAGR) over the past three years.
In the past three years, competition in the Pension Industry has been intensive, exacerbated with the introduction of the Micro-Pension Scheme. In assessing the industry’s competitive landscape, we analysed key parameters including: market share of AuMs, market share of enrolees, percentage growth in AuMs, absolute growth in AuMs, and AuMs per RSA holder for each operator with an overall industry ranking based on our findings.
Investment returns in the Nigeria Pension Industry averaged 9.4% in 2018, with only eight operators outperforming the Industry average. This represents a significant drop from the 16.2% average returns in 2017. As at 30 June, 2019 investment returns averaged 5.3%, and we expect this to ramp up to 11% driven by an upbeat capital market in the second half of the year.
Agusto & Co Pension Industry Survey also highlighted key considerations of enrolees in selecting and switching PFAs. The survey identified operators that would likely emerge as net winners and losers when the transfer window is opened.
Benefits of the Pension Industry Survey