Increasing in private pensions – Over 25 thousand contributors at the end of last year
Private pension schemes are taking considerable proportions. The year 2018 was a further confirmation of this positive trend. According to data from the Financial Supervisory Authority, the number of contributors to private pension funds has reached more than 25 thousand. Over the past year, the number of contributors was increased by about 4300 individuals or 21%.
The increase in the number of members is led mainly by the Credins Pension fund, which now counts more than 15 thousand contributors and holds over 60% of the market. Even in cooperation with the parent company, Credins Bank, this fund is successfully promoting the importance of investing in a private pension. The growth of private pension schemes would have a very important social and economic impact over the long term. The growth of these funds will reduce the pressure on the state social security scheme.
However, incentives to increase these funds are still insufficient. By law, these contributions are exempt from personal income tax to the extent of 15% of gross annual income, but not more than ALL 200 thousand per year. The Financial Supervisory Authority has been demanding from the government for years to increase fiscal incentives, but so far, without success.
In volume, the market remains modest but with steady growth year-on-year. The total assets of pension funds at the end of December reached ALL 2.3 billion, up 32% over 2018.