Private pension market grew by 12.69% in first half of 2017 – SiCred dominates
The private pension market in Albania is experiencing development in recent years.
This scheme is working well against the compulsory insurance scheme, which is surviving from the support provided by the state budget.
However, referring to official data from the Financial Supervisory Authority, it results that this market currently has a total net assets of ALL 1,496.25 million and an increase of approximately 177.51 million ALL or 13.46% compared to the end of 2016.
Expressed in Euro, total net assets are at 11.28 million euros.
The number of members in pension funds at the end of the first half of this year was 19,514, marking an increase of 12.69% compared to the end of 2016.
Currently, three pension funds, Sicred Pensions, Raiffeisen and Sigal operate in the private voluntary private pension market.
So referring to the indicators the largest number of members belongs to SiCred Pensions at 10,821, followed by Sigal at 5,899 and Raiffeisen at 2 794 members.
FSA, the authority overseeing this market, has aimed through various initiatives to increase the interest of individuals to contribute to private pension funds.
Following the imposition of escalating tax on personal income, in 2014, individuals have increased their investments in private pension funds because a part of high income is exempt from taxation.
A greater benefit is given to those who have a gross income of over 130 thousand lek per month, who may exclude some of these tax revenues at the rate of 23%, investing them in the form of contributions to a pension fund.
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