The state pension system is still able to pay people better pensions than II. pillar. Private pensions were not saved last year by the record growth of stock markets. Problem II. pillars remain high profits of private insurance companies. They sell people with savings of 10,000 euros in a private pension worth only 30 euros a month. Weak pensions thus spoil the impression of record growth in private funds II. pillar.

VIDEO: How will it go II. pillar in 2020

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“The average amount of lifetime pensions from II. pillar paid life insurance companies amounted to EUR 21.77 per month in 2019. It is EUR 1.61 less than life insurers paid in 2018, “ stated the Social Insurance Agency. It has access to information by law on the amount of private pensions. From December 2018 to December In 2019, the value of the average state-paid old-age benefit increased pension from EUR 444.26 to EUR 460.39.

V II. approximately 1.4 million Slovaks have invested in the pillar EUR 9.36 billion. People valued the money best last year index funds, whose annual return ranged from 21.2 percent to 28.6 percent. They were followed by stocks with yields ranging from 11.6 percent to 24.4 percent, mixed with from 11.7 to 12.7 percent. Least money people valued bond funds, whose yields ranged from 0.88 to 4.93 percent.

After a good year comes weaker

“This year, the stock market is unlikely to repeat the record growth from last year, “said the chairman of the Association of Pensions Management Companies (ADSS) Miroslav Kotov. According to him, mainly young people do not pay to have money saved in poorly earned guaranteed funds. They are the only ones to offer a guarantee of additional payment possible losses from the money of pension management companies. In better-earning funds, people will pay for any losses from own money and this rule applies to mixed, equity and index funds. In the past, despite the risk of loss, they earned the most money people who have invested in stocks and indexes for several decades funds.

Last year’s growth in stock markets had no effect on the increase private pensions and this year II. pillar will significantly help the state. The average earning person was saved in 2015 in the second pillar 7 360 eur. At that time, he could buy a private pension with this money in the amount of EUR 21 and the remaining EUR 376 he continued to receive from the State. Pension paid from both the first and second pillars amounted to EUR 397. If so the same man relied in old age only on the state, he would receive a pension in EUR 422. In this case, the loss at the entrance to II. pillar amounted to EUR 25.

State pensions are rising

Instead of pushing for private pensions, the state has decided increase for people located in II. pillars of state pensions. The average pension paid to the average person will increase the state by 13 euros and the resulting loss will fall to 12 euros per month.

The outgoing government has not met the high margins of private insurance companies solve. If a person buys a lifetime pension in the amount of 7,360 euros 21 euros, so he must live at least 30 years to get more from the insurance company money as he put into it. If he dies earlier, the survivors receive only a minimum money. Inheritance applies only to pensions paid during the first seven years of retirement life. If someone dies after three years survivors, the survivors will inherit EUR 1,008.

Unlike the state pension, a private pension will not be valorised at all. Any sharp rise in prices can thus completely erase it over the years value. In 1999, you could buy as many things for 100 euros as in the year 2019 for 197 euros. Although private insurance companies also offer the option to purchase pensions increased annually by two percent. But they are significant lower than non-valued pensions and for this reason is not very large the difference between valorised and non-valorised private pensions.

The state pension system is still able to pay people better pensions than II. pillar. Private pensions were not saved last year by the record growth of stock markets. Problem II. pillars remain high profits of private insurance companies. They sell people with savings of 10,000 euros in a private pension worth only 30 euros a month. Weak pensions thus spoil the impression of record growth in private funds II. pillar.

VIDEO: How will it go II. pillar in 2020

Watch more videos and shows v TV Pravda.

“The average amount of lifetime pensions from II. pillar paid life insurance companies amounted to EUR 21.77 per month in 2019. It is EUR 1.61 less than life insurers paid in 2018, “ stated the Social Insurance Agency. It has access to information by law on the amount of private pensions. From December 2018 to December In 2019, the value of the average state-paid old-age benefit increased pension from EUR 444.26 to EUR 460.39.

V II. approximately 1.4 million Slovaks have invested in the pillar EUR 9.36 billion. People valued the money best last year index funds, whose annual return ranged from 21.2 percent to 28.6 percent. They were followed by stocks with yields ranging from 11.6 percent to 24.4 percent, mixed with from 11.7 to 12.7 percent. Least money people valued bond funds, whose yields ranged from 0.88 to 4.93 percent.

After a good year comes weaker

“This year, the stock market is unlikely to repeat the record growth from last year, “said the chairman of the Association of Pensions Management Companies (ADSS) Miroslav Kotov. According to him, mainly young people do not pay to have money saved in poorly earned guaranteed funds. They are the only ones to offer a guarantee of additional payment possible losses from the money of pension management companies. In better-earning funds, people will pay for any losses from own money and this rule applies to mixed, equity and index funds. In the past, despite the risk of loss, they earned the most money people who have invested in stocks and indexes for several decades funds.

Last year’s growth in stock markets had no effect on the increase private pensions and this year II. pillar will significantly help the state. The average earning person was saved in 2015 in the second pillar 7 360 eur. At that time, he could buy a private pension with this money in the amount of EUR 21 and the remaining EUR 376 he continued to receive from the State. Pension paid from both the first and second pillars amounted to EUR 397. If so the same man relied in old age only on the state, he would receive a pension in EUR 422. In this case, the loss at the entrance to II. pillar amounted to EUR 25.

State pensions are rising

Instead of pushing for private pensions, the state has decided increase for people located in II. pillars of state pensions. The average pension paid to the average person will increase the state by 13 euros and the resulting loss will fall to 12 euros per month.

The outgoing government has not met the high margins of private insurance companies solve. If a person buys a lifetime pension in the amount of 7,360 euros 21 euros, so he must live at least 30 years to get more from the insurance company money as he put into it. If he dies earlier, the survivors receive only a minimum money. Inheritance applies only to pensions paid during the first seven years of retirement life. If someone dies after three years survivors, the survivors will inherit EUR 1,008.

Unlike the state pension, a private pension will not be valorised at all. Any sharp rise in prices can thus completely erase it over the years value. In 1999, you could buy as many things for 100 euros as in the year 2019 for 197 euros. Although private insurance companies also offer the option to purchase pensions increased annually by two percent. But they are significant lower than non-valued pensions and for this reason is not very large the difference between valorised and non-valorised private pensions.