[ad_1]
Wait until the last minute before making a decision not to burn your legacy, private funds advise
It is people with low wages who lose the most if they transfer their accounts to the so-called second pension from the private universal pension fund to the State Social Security.
This was announced by the association of complementary pension insurance companies on Friday. Two days earlier, the former Minister of Social Affairs Lydia Shouleva advised people who are insured with the minimum wage and a little more not to depend on the second pension, but to transfer their money to the National Institute of Social Security. And thus avoid a reduction of your pension by the State by 20%, which cannot be covered by the latter.
The minimum
it’s a pension
guaranteed
from the country
as a size for each insured and cannot be reduced.
Thus, no matter how small the amount of the second pension, it will be additional to the minimum, which is guaranteed, explained the member of the Association’s Board and owner of the Doverie Fund Daniela Petkova.
According to NSSI statistics, about 30% of new retirees receive a minimum pension. Many adults are expected to have the lowest pension in the coming years.
In the first cohort of privately funded retirees, women born between 1960 and 1964, the majority are low-income and low-income. For them, a transfer to the National Social Security Institute would also be detrimental, because they will receive the minimum pension without any supplement from the universal funds.
It is for these women that the Minister of Social Affairs, Denitsa Sacheva, announced that they will have a second chance to transfer to the National Institute of Social Security, since some 200,000 of them have already lost the opportunity. The change in insurance from two to one pension can currently be made up to 5 years before reaching retirement age.
People with very high salaries, around BGN 3,000 and more, also do not have an account to transfer their personal accounts to the National Social Security Institute, the funds claim. To them
and with the reduction
of the state
pension she will
stay high
from the roof,
so they will receive the maximum possible amount of the NSSI. In addition, they have accumulated good accounts in the universal funds, Petkova explained.
The youth also did not have the benefit of transferring their insurance only to the state.
“I would advise all policyholders to wait until the last moment before transferring their money to the National Social Security Institute or the Silver Fund. The reason is that in the event of premature death the heirs will not receive anything, and from the universal fund they are entitled to the money accumulated in the account ”, said Daniela Petkova in representation of the private companies.
At the end of September 2020, the universal pension funds
they have paid
132 million BGN
of heirs
of the deceased before retirement. “This money would not have been received if it had been transferred to the Silver Fund or the National Institute of Social Security,” Petkova said.
According to private funds, only if the option is valid until the last moment, a person will be able to make a correct assessment of which will be more profitable: 2 pensions or only one of the NSSI, which will not be reduced.
So far, private pension funds have transferred BGN 501 million to the National Social Security Institute and the Silver Fund due to people who have given up their second pension.
Private insurance has earned BGN 17 for every 100 paid in 2002.
Every BGN 100 paid as a contribution for a second pension in 2002 is currently BGN 205. When inflation is deducted, there are 117 BGN left, that is, they have accumulated 17 BGN.
This was explained during the presentation of the results of the private pension funds by the executive director of Allianz Bulgaria PIC Vladislav Rusev. Thus, he refuted the calculations of the economist and opponent of the private pension funds Lyubomir Hristov that 100 BGN, paid in 2002, in 2020 can buy goods for 84 BGN.
By the end of the year, universal pension funds will have overcome the impact of the crisis caused by the coronavirus, which melted their assets in the first quarter of 2020. Only for the third quarter of the year the growth of the assets of the funds is of 605 million BGN. for universal funds it is BGN 540 million.
BGN 4,029 has accumulated in the account of a person who has been insured with a minimum income for the last 18 years. Of this amount, 3,430 BGN was paid as insurance and the remainder accrued from the performance of the investments made by the funds.
For a person with average income, the contributions over 18 years are BGN 11,326, and with the performance the account becomes BGN 13,436. With one with maximum insurance income, the funds are paid BGN 19,229 and with the accumulated yield they become BGN 23,860. BGN
There are still much smaller accounts, on the order of BGN 1,000, but they belong to people who have interrupted their insurance, probably because they have left Bulgaria, the pension funds explained. In any case, these people will not receive a pension in our country due to the lack of sufficient experience in insurance, added the private companies.
[ad_2]
