They published the performance of pension savings. See the comparison of Slovakia and EU countries – People – Economy
The revenues of the Slovak second pillar were not bad at all compared to previous periods. The financial institution Better Finance has published its annual comparison of the returns of pension schemes across the season of the European Union.
photo: TASR, Pavle Neubauer
Minister of Labor Milan Krajniak.
The results published by Better Finance (European Federation of Investors and Users of Financial Services|.
The big enemy of returns is inflation. It actually reduces the purchase value of money. If we subtract the effect of inflation in the European 27 countries, the value of 100 euros would fall to only 64 euros from 2000 to 2021.
Only for 2022, mainly due to inflation and the fact that the government drains resources through taxation, the organization estimates that households in the countries of the Eurozone, comprising a trillion euros.
Read more They approved a new information aid. Ruler of 100 euro notes, see who gets them
Experts from Better Finance calculated that between 2005 and 2021, the average annual return in the second pillar adjusted for inflation and fees (but not taxes) in Slovakia was only 0.21 percent. For comparison, who saved in the default fund (AP7 Safa) in Sweden saw a return of up to 482 percent from 2021 and the average annual return adjusted for inflation reached up to 10.59 percent since the beginning of the measurement.
The comparison of the performance of pension schemes in the second pillar for 2021 is shown in the following table. The winner is the Swedish savers in the second pillar, the inflation-adjusted performance of the pension scheme for the past year will bring up to 13.5 percent.
They are followed by Lithuania with almost 6 percent. Slovakia is in third place with a performance of 3.38 percent. In comparison, for 2020 the average return was only 2.1 percent.
Slovakia is currently waiting for the approval of the reform of the second pillar. Deputies were not supposed to vote last Thursday, but did not, due to technology in the National Council. Automatic entry is proposed for those who work and pay contributions and are not yet 40 years old. Savings will be transferred to stocks by those who did nothing with their money and left it in bond funds. The state will also define the so-called the default investment – that is, where especially younger savers should keep their money. The one-time withdrawal should be preserved, but its taxation is also at stake.