Private pension schemes total 21 thousand members with Credins Pensions at the top

Although the volume of private pension market remains modest, the number of contributors to these funds has reached significant figures.

According to data issued by the Financial Supervisory Authority, the number of members at the end of 2017 amounted to approximately 21,000.

Since the beginning of the year, the number of contributors has increased by about 3,600 individuals or 21%.

The increase in the number of members is being led especially by Credins Pensions fund, which is pursuing a very active strategy of promoting benefits from private pension funds through the parent company network Credins Bank.

Credins Pensions has reached over 12 thousand contributors and holds around 58% of the market, based on the number of members.

In terms of value, the market remains modest but with steady growth from year to year.

The total assets of pension funds at the end of September amounted to ALL 1.7 billion, with an annual growth of 31%.

Contributions to private pension funds are almost entirely invested in bonds and treasury bills of the Albanian government with no investment risk.

Of the total assets, the largest company is Sigal Pensions, with approximately 51% of the market.

The environment with low interest rates is a factor that has stimulated the growth of these funds.

Many individuals have considered an interesting alternative to invest savings in a private pension scheme.

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

By law, these contributions are exempt from personal income tax to the extent of 15% of gross annual income, but not more than 200 thousand leks per year.

SCAN

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