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Old-age hoarders gained 5.2 percent last year. Tadas Gudaitis, director of the Lithuanian Association of Pension and Investment Funds, said on Thursday.
“All pension funds, whether we take the youngest or the oldest, have performed positively,” he told reporters.
We had a severe recession during the first wave of the pandemic, but the results of the pension funds returned for the rest of the year.
Due to the COVID-19 crisis, the return of pension funds in the first quarter of 2020 fell to 5-17%, depending on the risk group. In other words, for those affiliated with pension funds who had less time left before retirement, the decline in assets was slower.
The pension fund value table presented at the press conference shows that the value returned to the pre-pandemic level in the rest of the year since the spring.
“During the first wave of the pandemic, we had a sharp drop, but in the rest of the year the results of the pension funds returned,” said T. Gudaitis.
“In fact, that vaccine push has put such a fun and good emphasis on those who hoard it,” he added.
According to the data presented, last year the second-tier pension funds of the youngest participants were the highest earners, investing more funds in company stocks according to the life cycle strategy. However, the funds that managed the savings of the elderly also managed to “beat” inflation.
Photo by LIPFA / Tadas Gudaitis
Andrius Adomkus, director of Luminor’s pension asset management group, said it was difficult to forecast 2021 in the market.
“We don’t have a crystal ball and it is very difficult to predict the future,” he said.
The investment expert said that with major equity markets rising to record levels by the end of 2020, long-term performance forecasts are subdued.
However, he said, people should continue to accumulate despite crises, as returns on investment remain positive in the long run, even with occasional fluctuations.
“The best advice is not to be distracted, because it is a long-term accumulation, a long-term investment,” said A. Domkus.
123RF.com nuotr./Pinigai
In addition to the accumulated pension, several innovations are expected from 2021: the state incentive contributions will increase, as well as from 0.65 to 0.5 percent. The asset management fees charged by pension accumulation companies will decrease.
This year, the pension accumulation system will be replenished by more than 34 thousand. new entries. In half a year, they have to decide if they want to accumulate and privately.
Lithuania’s second pillar of pensions, which complements the state social security system, has 1.3 million. participants, represent more than 80%. Lithuanian workers.
The pension savings of the country’s population are invested and stored by five pension fund management companies: Aviva Lietuva, INVL Asset Management, Luminor Investicijų Valdymas, SEB Investicijų Valdymas and Swedbank Investicijų Valdymas.
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