2023-07-20 10:57:07
After the first two quarters, positive performance of +3.28 percent – the turnaround after the difficult year 2022 was successful
Vienna (OTS) – The Austrian pension funds report a result of +3.28 percent for the first half of the year. This continues the trend from the first quarter. Despite the persistently difficult market environment, due among other things to falling inflation rates and concerns about a possible deep recession, domestic pension funds were able to achieve a clearly positive investment result in the second quarter as well.
Long-term result as the most important key figure
“Due to its good long-term performance, the domestic pension fund system is sustainable and stable and secures the standard of living for almost a quarter of all Austrians. In the long-term average since the 1990s, according to data from the Oesterreichische Kontrollbank, the pension funds have achieved a performance of +4.90 percent per year. The pension fund system works very well, also compared to other forms of investment,” says Andreas Zakostelsky, chairman of the Association of Pension and Provident Funds in the Austrian Economic Chamber (WKÖ). “A look at the long-term result shows that the system of the second pillar has proven its worth. Employees can significantly improve their quality of life in retirement with a pension fund solution,” says Zakostelsky.
Pension funds are constantly evolving
In the past 20 years, the domestic pension system has been continuously developed. For example, the guaranteed pension was introduced in 2013. This guarantees that the pension granted upon retirement cannot fall below the level of this initial pension in the further course of life. It is also revalued every five years.
But the pension funds are constantly working on further developing the system. A major goal is the pension fund solution for everyone in Austria. A concrete solution to achieve this quickly is the creation of a general pension fund contract – as already stated in the current government program. This enables all employed persons in Austria to decide whether to transfer their severance payment amounts to a pension fund when they retire in order to receive a lifelong supplementary pension.
About the Association of Pension and Provision Funds
The professional association of pension and provident funds is the legal representative of all pension funds and company provident funds. In the case of pension funds, employers pay monthly contributions for their employees on the basis of a voluntarily concluded pension fund contract; these employees can also pay into the pension fund. The contributions are assessed and paid out as a lifelong supplementary pension from the time you retire. Company provident funds are the only nationwide system of capital-funded provision, since 1.53 percent of gross wages are paid in monthly by the employer (new severance pay) and thus form an important pillar as a supplement to state pensions. Overall, the association represents over 4 million beneficiaries and invests the pension and provident funds over 41 billion euros – they are the largest private pension payers in Austria. (PWK241/JHR)
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