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Savings for second pension finally exceeded 3000 leva – 【Business News】 latest financial news and foreign exchange market

The average amount of the accumulated funds for a second pension finally exceeded BGN 3,000. As of March 31, 2019, there were on average 3147.48 levs in the accounts of the born after 1959, according to statistics from the Financial Supervision Commission. However, the optimistic news is valid only for men, where the average amount of the accumulated funds is almost BGN 3300 (BGN 3299.56). Women are close, but still below the 3000 leva limit with 2986.02 leva, according to Sega.

People who retire first with two pensions – Bulgarians aged 55-59, have about 4000 levs in their bills. The men in this age category have accumulated an average of 3971.38 BGN and the women – 3884.54 BGN. However, it is clear what the future pensioners will react to these amounts. Experts' expectations are that the first cohort pensioners of the reform have minimum sums from the second pillar, and recently at a conference on the subject there was also anxiety that the first years would be accompanied by great discontent. It is known that many lots are hollow – they have ever been made for some reason, but there are no regular proceeds of money. New forms of work as part-time, and so on. also lead to low amounts.

Against this backdrop, the social ministry has not yet published the bill that should regulate the retirement phase of the second pension. According to a year-long changeover, the universal funds will guarantee a minimum amount of the second pension. Payment will be possible over the lifetime or overdue, and the choice is limited based on the amount in the batch. In other words, the first pensioners are unlikely to have a choice because they will not make a living for them.

After the bad 2018, when there was a negative return, the universal pension funds improved their performance. All funds have managed to achieve a positive return for the past 24 months, data show on March 29 on an annual basis. For the period March 31, 2017 – March 29, 2019, the weighted average yield of the nine funds was 1.36% at 0.96% for the prior period at the end of 2018.

Two funds have even managed to surpass 2% yield, according to figures at the end of the first quarter of 2019. "Saglasie" has 2.27% on an annual basis for the past 24 months, and "Toplina" achieves 2.25%. Doverie, which holds the largest market share, has 1.25%, DSK Rodina -1.73%, En-PFP -1.39%, CCB-Sila and UPF-Future have 1.80% . Less than 1% is Allianz Bulgaria with 0.24% and UPI UP with 0.32%.


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