September 9, 2024 – Austria’s pension funds managed assets of 27.6 billion euros at the end of the first half of the year. The investment performance was 1.25 percent in the second quarter and 3.98 percent in the first half of the year. In total, just over a million people are registered in the pension fund system.
<img alt="FMA quarterly report on pension funds (cover; source: FMA)” title=”FMA quarterly report on pension funds (cover; source: FMA)” height=”362″ src=”https://www.versicherungsjournal.at/images/out/normal/fma-bericht-pk2024q2-cover-cpr-fma_256x362.jpg” width=”256″/> Those: FMA
At the end of the second quarter of 2024, the eight Austrian pension funds managed a total of 27.60 billion euros in assets – 1.55 percent more than at the end of the first quarter.
Of this, 2.34 billion or 8.49 percent went to the three company pension funds and the rest to the inter-company pension funds.
This is evident from the new quarterly report published by Financial Market Supervision (FMA) published on Friday.
Table of Contents
- 1 Almost three quarters in shares and bonds
- 2 1.25 percent performance in the second quarter, 3.98 in the half year
- 3 One million beneficiaries and beneficiaries
- 4 Download
- 5 Here are some relevant “People Also Ask” questions for the title: **Austria’s Pension Funds: A Comprehensive Overview**:
- 6 Here are some relevant “People Also Ask” (PAA) questions for the title **Austria’s Pension Funds: A Comprehensive Overview**:
Table of Contents
95.50 percent of the assets are held indirectly through investment funds.
When broken down into investment classes, stocks make up the largest share at 39.94 percent. Bonds are the second largest item, accounting for around a third (33.28 percent).
Credit balances at credit institutions account for 6.11 percent, real estate for 5.92 percent, loans and credits for 3.14 percent and other assets for 11.61 percent.
After currency hedging transactions, around 34.87 percent of the assets were invested in foreign currency, the FMA reports.
1.25 percent performance in the second quarter, 3.98 in the half year
According to the FMA, the investment performance of pension funds calculated by the Oesterreichische Kontrollbank (OeKB) was +1.25 percent in the second quarter. In the first half of the year as a whole, it was +3.98 percent.
|
Pension fund segment |
Q2 2024 |
H1 2024 |
2023 ges. |
5 years pa |
10 years pa |
|---|---|---|---|---|---|
One million beneficiaries and beneficiaries
The number of people entitled to benefits and pensions grew by 0.21 percent to 1,081,514 in the second quarter compared to the first. Of these, 13.68 percent (147,985 people) were benefit recipients.
This means that around one in four employed persons in Austria (23.39 percent) are entitled to such a pension benefit, the FMA states.
Download
The “Quarterly Report Q2 2024 Pension Funds” can be downloaded as a PDF document from the FMA website can be downloaded.
Here are some relevant “People Also Ask” questions for the title: **Austria’s Pension Funds: A Comprehensive Overview**:
Austria’s Pension Funds: A Comprehensive Overview
As of September 9, 2024, Austria’s pension funds have managed to accumulate a staggering 27.6 billion euros in assets, marking a 1.55% increase from the previous quarter. This growth is a testament to the country’s commitment to providing a supplementary pension system to its citizens, in addition to the pension paid by public social security institutions [[1]].
According to the Financial Market Supervision (FMA) quarterly report, the eight Austrian pension funds have invested a significant portion of their assets in shares and bonds, with 95.50% of the assets held indirectly through investment funds [[3]]. Stocks make up the largest share at 39.94%, followed by bonds at 33.28%. Credit balances at credit institutions account for 6.11%, real estate for 5.92%, loans and credits for 3.14%, and other assets for 11.61%. Furthermore, around 34.87% of the assets were invested in foreign currency after currency hedging transactions.
The investment performance of pension funds, calculated by the Oesterreichische Kontrollbank (OeKB), has been encouraging, with a return of 1.25% in the second quarter and 3.98% in the first half of the year. The performance varies across different segments, with inter-company pension funds yielding 1.35% in the second quarter and 4.14% in the first half of the year, while company pension funds returned 0.22% in the second quarter and 2.24% in the first half of the year.
One million people are currently registered in the pension fund system, which is a significant milestone in Austria’s efforts to provide a comfortable retirement for its citizens. The country has been gradually raising the female retirement age, which will reach 65 years by 2033, as part of its efforts to ensure the long-term sustainability of the pension system [[2]].
Austria’s pension funds have demonstrated resilience and growth, with a strong investment performance and a significant increase in assets under management. The country’s commitment to providing a supplementary pension system to its citizens is a testament to its dedication to the welfare of its people.
References:
[1] Generali. (n.d.). Pension Funds. Retrieved from
[2] European Commission. (2021). Austrian Country Fiche on Public Pensions. Retrieved from <https://economy-finance.ec.europa.eu/document/download/3bc1f6ed-2dcf-40cb-a179-27a87629083ben?filename=at–ar2021finalpension_fiche.pdf>
[3] OeKB. (n.d.). Pension Fund Data. Retrieved from
Here are some relevant “People Also Ask” (PAA) questions for the title **Austria’s Pension Funds: A Comprehensive Overview**:
Austria’s Pension Funds: A Comprehensive Overview
As of the second quarter of 2024, Austria’s pension funds managed a total of 27.60 billion euros in assets, a 1.55% increase from the previous quarter [[1]]. This growth is a promising sign for the country’s pension system, which is a pay-as-you-go scheme financed by employer and employee contributions, totaling 10.25% of earnings for employees [[2]]. The eight existing pension funds in Austria aim to promote and support the common interests of their members [[3]].
Investment Portfolio
A closer look at the investment portfolio of Austrian pension funds reveals that almost three-quarters of the assets are invested in shares and bonds. Stocks make up the largest share at 39.94%, followed by bonds, which account for around a third (33.28%) of the total assets. Other investment classes include credit balances at credit institutions (6.11%), real estate (5.92%), loans and credits (3.14%), and other assets (11.61%). After currency hedging transactions, approximately 34.87% of the assets are invested in foreign currency [[1]].
Investment Performance
The investment performance of Austrian pension funds, calculated by the Oesterreichische Kontrollbank (OeKB), was +1.25% in the second quarter of 2024 and +3.98% in the first half of the year. This performance is a testament to the effective management of the pension funds, ensuring a stable source of income for over a million registered beneficiaries [[1]].
Pension Fund System
Austria’s pension fund system is designed to provide a safety net for its citizens in their retirement years. With over a million people registered, the system plays a vital role in the country’s social security network. The state pension system, which is a pay-as-you-go scheme, is financed by employer and employee contributions, highlighting the importance of a collective effort to ensure a secure financial future for all.
Conclusion
Austria’s pension funds have demonstrated a strong performance in the first half of 2024, with a total of 27.60 billion euros in assets and an investment return of 3.98% in the first half of the year. The funds’ investment portfolio is diversified, with a focus on shares and bonds, and the system as a whole provides a vital safety net for over a million registered beneficiaries. As the pension fund system continues to evolve, it is essential to ensure its sustainability and effectiveness in providing a secure financial future for Austria’s citizens.
References:
People Also Ask:
What is the current state of Austria’s pension funds?
How do Austrian pension funds invest their assets?
What is the investment performance of Austrian pension funds?
How many people are registered in the Austrian pension fund system?
* What is the purpose of Austria’s pension fund system?
