The United Nations (UN) estimates that by 2050, there will be 2 billion people over 60 years old (i.e., would-be pension-benefits-recipients) worldwide, and 80% of the 2 billion will be living in developing countries, especially Africa. With such an increase in old age, coupled with the fact that one in five live on less than a dollar a day, Africans should not only institute social programs such as retirement fund, rather effective retirement funds that will help to alleviate poverty amongst the elderly, the UN advised.

Is Liberia’s National Social Security and Welfare Corporation (NASSCORP) up to the task, a country that is ranked as one of the 26 poorest African countries? This article will not focus on administrative cost versus pensioners’ benefits and, or timely payment of benefits, relevant issues. Rather, it focuses on whether NASSCORP invests a significant portion of money in less risky portfolios, even if returns on risky portfolios are attractive or tempting. More so, how can NASSCORP generate adequate investment income if Liberia is far from becoming a middle-income community, a country with reliable electricity, infrastructure, good-paying jobs, etc.?

Also, Liberia will not reach to the middle-income level by 2030 if it does not improve its economic growth from (5%) five percent to (9%) nine percent, according to the Liberia 2030 Vision. A middle-income level-society does not only create environment conducive for pension funds to earn high returns on investment. Retirees within such a community usually have other income (dividends, interest income, rental income, etc.) in addition to pension benefits.

Experts continue to advise against investing in risky portfolios since a pensioner benefits payment does not come from government revenue or budgetary allotment; rather it comes from investment income and the contributions from employees and employers. Massive loss, which is usually associated with risky portfolios, might wipe out investment, a nightmare for investors. So, let us look at the investment section of the 2014 Annual Report of the NASSCORP. I did not get the Audited Financial Report and management did not respond to a request to substantiate its investment numbers.

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