Number of private pensions in Albania reaches 22.000

The number of members of private pension funds has reached about 22 thousand.

According to data from the Financial Supervisory Authority, in the first three months of this year the number of contributors has increased by about a thousand individuals or roughly 5%.

The increase in the number of members was led especially by the Credins Pensions fund, which has reached nearly 13 thousand contributors and holds over 58% of the market, according to the number of members.

In value, the market remains modest, but with steady growth.

The total assets of pension funds at the end of March amounted to ALL 1.9 billion, an increase of 10% compared to the end of 2017.

Contributions to private pension funds are almost entirely invested in bonds and treasury bills of the Albanian government with an investment risk close to 0.

Regarding the total of assets, the largest is the company Sigal Pensions, with 49% of the market.

In recent years, low deposit interest rates have led more individuals to prefer to channel savings into product alternatives, such as private pension.

To invest in a private pension, legally, there are also some fiscal incentives, though profitability in their practice is often difficult.

Encouraging the private pension market is one of the priorities in the new AMF strategy for developing a market under supervision.

SCAN

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