Most funds therefore outpaced inflation, which reached 10.7% last year. After the unsuccessful year of 2022, in which dynamic pension funds amortized on average more than 10% in addition to inflation of 15.1%, a very significant turning point occurred.
“We believe that not only last year’s excellent results, but also the long-term high-quality performance, especially of dynamic and balanced funds, will constitute an incentive for members of the old supplementary pension scheme to switch to new funds,” he said the president of the association Aleš Poklop.
“Those who are afraid of moving with all the money saved so far can freeze it on the old contract and sign a second one with the new funds,” he added.
Investments can also offer old-age insurance
Over the last five years, dynamic mutual funds have achieved an average annual appreciation of 9.05%, the balance of 5.4% and the conservative one of only 1.7%.
As announced by Poklop, a weaker annual result is traditionally expected for transformed pension funds, i.e. for former supplementary pension insurances. The data will only be known in spring, but the year before the yield was between 1 and 2%.
Almost half of people own some of the funds. In total there are 4.3 million contracts, of which over 60% are still the original ones, i.e. for transformed funds.
New this year
For this year, legislators have prepared a series of changes to supplementary pension insurance. Since January the rate of tax deductions is more favorable, up to 48,000 Czech crowns. However, the amount also includes life insurance and two new features: long-term care insurance and the DIP long-term investment product.
Furthermore there is the new possibility of two pension savings contracts, when people do not have to transfer the money saved to date due to the transition from the old supplementary pension insurance to the new supplementary savings. A new type of fund is also offered, the so-called alternative fund, which will offer a higher return at the expense of greater risk.
Starting in July, participants will see a change in state benefits when their rate will be consolidated. The state will start adding a uniform 20% to monthly deposits between 500 and 1,700 CZK.
So far, participants still receive between 23 and 30 percent of the deposited amount, from 300 to 1,000 crowns, and above 1,000 crowns the contribution sent by the state no longer changes.
From July the state will send a contribution of 20% up to a maximum of 1,700 crowns. Of course, you can save more in the pension account, but the maximum limit for the state contribution is set at 340 crowns, or 20% of 1,700 crowns. From July pensioners will no longer receive the check from the State.
Since 2013, only supplementary pension savings contracts can be stipulated. This differs from supplementary pension insurance mainly in the need to choose an investment strategy. The new funds no longer guarantee that a possible loss will not reduce the client’s savings. However, they also offer possible higher appreciation with higher risk.
Next year’s stocks are unlikely to outpace this year’s growth, analysts say
2024-01-14 16:48:42
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